Vilnius has achieved a historic victory - the Lithuanian capital has become the first Baltic city to surpass the European Union (EU) average in terms of gross domestic product (GDP) per capita. Economists say this symbolizes not only an economic leap, but also a change in the mentality of Vilnius residents.
According to Luminor Bank economist Žygimantas Mauricas, preliminary data for 2024 show that Vilnius' GDP per capita was 5 percent higher than the European Union average. This is the first such case in the Baltic States since the beginning of their EU membership.
"Vilnius has not only become the richest city in the Baltic States, but also the first Baltic capital to catch up and surpass the European Union average. This is an impressive achievement, considering that a decade ago Tallinn was almost a quarter richer than Vilnius, and Riga was at a similar level," noted Ž. Mauricas.
The economist added that according to the latest data, Vilnius' GDP per capita is as much as 36 percent higher than Riga's and 9 percent higher than Tallinn's. Vilnius generated as much as 2024 billion euros in GDP in 36 - significantly more than Riga (26 billion) and Tallinn (24 billion).
Another important turning point – Vilnius became the largest city in the Baltic States by population.
"Over the past five years, the population of Vilnius has increased from 798 to 868 thousand, while in Riga it has decreased from 898 to 860 thousand, and in Tallinn it has increased from 599 to 646 thousand. Vilnius is now not only the richest, but also the largest city in the Baltic region," said Ž. Mauricas.
The economist points out that Vilnius' economy is already almost equal to the economy of all of Estonia or Latvia - Vilnius's GDP of 36 billion euros is only slightly less than that of all of Latvia (39 billion) and Estonia (40 billion).
The quality of life indicator is also important, and it is improving very rapidly in Vilnius. According to the European Urban Quality of Life Survey (2023), Vilnius is currently one of the best cities in the entire EU in terms of quality of life, surpassed only by Scandinavian cities and Luxembourg. According to Ž. Maurits, Vilnius residents most appreciate “good air quality, relatively low noise, low crime rate, well-maintained public spaces, parks and an active cultural life.”
"This symbolizes a historic transformation in the mindset of Vilnius residents: after all, Vilnius has been chasing and equalizing with other European Union cities for a long time, and now it is becoming a city that other EU cities want to emulate," the economist added.
However, according to Ž. Maurits, it is important to note that not only the capital is growing strongly in Lithuania: “It is gratifying that there is no single city-state phenomenon in Lithuania. Not only Vilnius’ economy is growing in Lithuania – Kaunas is also expanding rapidly, Klaipeda and a significant part of smaller Lithuanian cities. This is different from Latvia and Estonia, where the capitals dominate – Riga generates as much as 66 percent of Latvia's GDP, Tallinn – 62 percent of Estonia's GDP. Meanwhile, Vilnius generates only 45 percent of Lithuania's GDP.”
According to the economist, such economic progress of the Lithuanian capital demonstrates long-term strategic efforts, orientation towards high value-added sectors, and successful attraction of talent to the country.
"Vilnius today is no longer a regional, but a European center of competition," summarized Ž. Mauricas.
