Overview
Lithuania has a rapidly advancing digital economy characterized by widespread adoption of digital public services (96% business, 87% citizen usage) and a strong focus on digital skills, connectivity, and innovation, particularly in fintech. The nation is a leader in Europe for digital public services and open government data, though it faces challenges in meeting ICT professional demand. Investment in digital infrastructure, the rollout of the digital euro, and national digital strategies are driving the country’s growth and competitiveness in the global digital market.
The country is expanding high-capacity networks, including fiber and 5G, especially in rural areas, with government funding to ensure broad access. Through its National Digital Decade Plan and Recovery and Resilience Plan, Lithuania is making substantial investments and implementing reforms to promote digitization, support the digital economy, and increase digital skills. Lithuania spends approximately 2% of its GDP to encourage the use of digital services and maintain its competitive edge as one of the world’s most digitized countries.
Market Challenges
Despite efforts to improve digital skills, there is a significant shortage of qualified ICT professionals, with demand projected to far outpace supply. While progress has been made, a continuous effort is required to meet the EU’s Digital Decade targets and ensure the population possesses the necessary digital competencies. Increasing the use of artificial intelligence and cloud computing in businesses create new challenges.
Regulatory Environment
Lithuania has made significant strides in fostering its digital economy, supported by a regulatory framework that emphasizes transparency and stakeholder engagement. The process for creating or abolishing regulations involves a structured approach, including mandatory regulatory impact assessments to evaluate the potential economic, social, and environmental effects of proposed rules. This ensures that new regulations are evidence-based and aligned with national priorities. The Lithuanian government engages with private industry and other stakeholders during the rule-making process, often through public consultations and working groups.
Digital Economy related trade events
- Startup Lithuania Accelerator
- Big Data Conference Europe 2025
- Industry 4.0: Future Forward