Assessment and recommendations

The international financial crisis hit the Lithuanian economy harder than on average in OECD economies. Its continued vulnerability to adverse developments in the international economy has seen the introduction of a far-reaching convergence programme aiming to reduce public expenditure from 42.2% of GDP in 2010 to 30.9% of GDP in 2020. This includes a target reduction for educational expenditure from 6.2% to 4.8% of GDP. These economic difficulties have had significant social impact: At 10.9%, the unemployment rate remains twice as high as in 2008, with greater risk for youths aged 15‑24 and 30.8% of the Lithuanian population is at risk of poverty or social exclusion. There has also been mass emigration since 1990, with around 20% of the 1990s population leaving Lithuania over the following 20 years. Emigration continues and between 2011 and 2014 the population further decreased from 3 to 2.9 million. The majority of emigrants are of working age and, increasingly, families. This has presented significant efficiency challenges to the school network. Lithuania is the fastest ageing population in Europe, which will put further pressure on public budgets. Already, public expenditure per student in Lithuania is one of the lowest among European Union (EU) countries.