Edas Matulaitis

For the first time since 1995, investment as a share of the economy is higher in Lithuania than in Estonia. According to Eurostat, gross fixed capital formation in Lithuania amounted to 22.1% of GDP in the first quarter of 2026, while in Estonia it fell to 21.7%. Lithuania remained ahead in the second quarter, with investment reaching 22.4% of GDP, compared with 22.1% in Estonia.

Unemployment insurance should serve as a financial cushion when someone unexpectedly loses their job, rather than as a system that encourages people to remain outside the labor market at others’ expense. Yet, Lithuania spends around five times more of its GDP on unemployment-related benefits than Poland, while its unemployment rate is more than twice as high. Poland’s experience shows how much labor-market rules and incentives can matter.