In 2019, economist and professor Gitanas Nausėda won the presidential race as an independent candidate. The legislative elections in October 2020 were won by the opposition, the conservative party Homeland Union. Lithuania’s new government is led by economist and former finance minister Ingrida Šimonytė.

Amit the COVID-19 outbreak, Lithuania’s economy has proven to be resilient. However, while the economic downturn in 2020 was one of the lowest in the whole EU, the unemployment rate jumped to 10%, a rate that had not been seen in a long time.

After the outbreak of the COVID-19 pandemic, the government managed to mitigate the impact of the first wave. However, the government reduced its reformist ambitions, partially due to the upcoming elections. The most pressing issues for the new government are a relatively high level of inequality, the looming middle-income trap, and the continuing fight against corruption.

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