The Lithuanian elite asks young people: Are you stupid enough to stay in Lithuania where rent and food prices are the same as in Germany while Lithuanian salaries are more than twice smaller?

This outrageous talk is flooding all our information sources in Lithuania:

"Increased prices have encouraged Lithuanian youth to tighten their belts. Compared to neighboring countries, housing rent or food prices in Lithuania are in some cases disproportionately high. Even milk in Sweden and Germany is cheaper than here. However, the salaries paid in Lithuanian companies are  comparable to Western European countries. According to the data of the research carried out at the initiative of SEB Bank, inflation affected the ability to meet one's needs more than every second resident of Lithuania aged 18-29. More than half (53%) of the country's young people say they can no longer afford what they used to afford. Comparing the prices between Lithuania and neighboring countries, the differences are obvious. However, the good news is that salaries in our country are competitive even on the scale of Western Europe.

Rental prices are almost the same as in Germany

In 2021 according to Eurostat, the level of food prices in our country was approximately 8 percent. lower than in Latvia and 19 percent lower than in Germany. Of course, we did not overtake our neighbor Poland in this aspect - whatever, but food is cheaper there. Electricity and gas price level in 2021 was very similar in Lithuania, Latvia and Poland, while the residents of Italy and Germany had to pay almost twice as much for communal services. However, in 2022 as the prices of many goods and services rose rapidly in the country, the situation changed to the detriment of Lithuanians. According to SEB Bank's data, due to inflation, there has been a significant increase in the number of young Lithuanian residents, who spend the largest part of their monthly expenses only on the most necessary needs: food and housing. Accordingly, less and less is spent on entertainment, clothing and footwear.

It is not surprising that you have to save for goods and services that are not the first necessity, because Lithuanians already have to pay similar amounts to renting a house alone, as in Germany.

Apartment rents in Vilnius currently reach 12-13 EUR/m2, and in Berlin - 14-15 EUR/m2, although wages there are almost twice as high.

Food is more expensive than in Sweden

Food prices in Lithuania are also disappointing. According to the data of the price monitoring portal "Pricer.lt", 50 out of 52 goods monitored by the portal increased in price during the year. Most of them went up by as much as 10 percent or more. It is said that the most increasing in prices goods this year are bananas, eggs, the cheapest fermented cheese, hake, sausage, sugar, the cheapest sour cream, tomato juice and pasta. Although in 2021 the level of food prices in Lithuania was lower than in neighboring countries, Arūnas Vizickas, the head of the "Pricer.lt" portal, assures that now the prices are already relatively high.

For example, a liter of 2.5 percent. of fat "Dvaro" milk increased from 1.15 EUR to 1.75 EUR per year. In Poland, a similar product currently costs EUR 0.92, and in Germany - EUR 1.49. The interviewer claims that milk is cheaper even in Sweden - here its price reaches 1.45 EUR. Meanwhile, cheese in Lithuania is more expensive than in Germany, but cheaper than in Sweden, says A. Vizickas. 

The price of fat "Dvaro" cheese in Lithuania rose by 30 percent during the year - from EUR 1.69 to EUR 2.19. In Poland, a similar cheese costs EUR 1.05, in Germany - EUR 1.99, and in Sweden - EUR 3.09. Dessert lovers also have to be disappointed. For example, the popular Nutella chocolate and nut cream costs EUR 3.69 in Lithuania. According to "Pricer.lt" data, it is currently cheaper not only in Poland (2.67 EUR), but also in Sweden (2.53 EUR) and Estonia (3.15 EUR).

  According to the interviewer, 500 g of Dallmayr ground coffee costs EUR 5.74 in Poland, EUR 7.99 in Germany, and even EUR 11.49 in Lithuania. "I have also seen more attractive prices for this coffee in smaller shops in Lithuania, but in the main retail chains its price ranges from EUR 10.79 to EUR 11.49," notes A. Vizickas.

The manager of the price comparison portal also points out that, for example, in Polish pharmacies, you can find medicinal products that are even twice as cheap.

"There are medicines there that are not available on the Lithuanian market, but the prices differ by about two times. However, it is quite difficult to purchase prescription drugs prescribed in Lithuania in Poland", says A. Vizickas.

However, not everything costs more in Lithuania. For example, public transport prices in Lithuania and Latvia are almost identical. A public transport ticket valid for a month for an adult costs EUR 29 in Vilnius and EUR 30 in Riga. In the Polish capital, the price of such a ticket ranges from 21 to 38 EUR (depending on the city zone), and in Berlin - from 86 to 107 EUR.

Lithuanians earn more

Although the prices of goods are not encouraging, the good news is that Lithuania is already catching up with Germany, the largest European economy, in terms of average wages, notes Tadas Povilauskas, SEB bank's economist. "Over the past five years, the average gross wage (GWU) in Lithuania has increased by 64 percent, while in Germany it has increased by only 15 percent. Therefore, the convergence of the average salary with Germany took place quite quickly, says T. Povilauskas. –

Of course, the average gross salary after taxes in Germany is even more than two times, higher than in Lithuania.

For example, in 2022 In the third quarter, the average salary after taxes in Lithuania was 1.1 thousand. EUR, and in Germany - about 2.4 thousand. Eur.

Meanwhile, in both Latvia and Poland, the average salary after taxes in 2022 In the third quarter, it reached 1 thousand. euros. Compared to these neighboring countries, salaries in Lithuania are the highest. "It is true that young people usually earn less than the national average wage, so the real average wage received by young people would be lower," adds T. Povilauskas.

Whether salaries in Lithuania will continue to increase depends on the efforts of the young people themselves, emphasizes the SEB economist. "Working abroad is a decision leaving responsibility for the future of your country to others. Wages in Lithuania will increase rapidly if the labor productivity created in Lithuania continues to grow, which is not only in the hands of the government and business, but also in the hands of the people, depending on how much they contribute to the creation of greater added value", notes the interviewee of "Delfi".

  T. Povilauskas also notes that since 2018, the number of Lithuanians returning from abroad has increased significantly and the number of Lithuanians going abroad to live has decreased (because of Covid (K.)): "This shows that the economic and social situation in Lithuania has improved rapidly in recent years."

According to the interviewer, a young person in Lithuania has had no problems finding a job in recent years, especially considering the rapid growth of many companies with Lithuanian capital operating in global markets. "I think it is normal that many young people from Lithuania leave to study abroad, but it is important that most of them return here after gaining experience," says the economist. "The experience of several years shows that many young people have returned, especially those working in Lithuanian companies, where salaries are not inferior to Western European countries, and the prices of many services are still lower in Lithuania.""

 

In Poland, the ratio between food prices and wages is the same as in Germany. In Lithuania, this ratio is twice as high. For the same work, we get twice less food. The elite of tiny Lithuania colluded and shamelessly milks us. We need to decide what our response should be.