Since gaining independence from the Soviet Union in 1990, Lithuania has made some dramatic changes, quickly dismantling its old Soviet-style command economy, introducing a market system and liberalising foreign trade, which has shifted away from the former Soviet Union to Western markets. In fact, the European Union now accounts for about half of all Lithuanian trade.

In 1992, Lithuania joined both the International Monetary Fund (IMF) and the World Bank, and, in 2001, became a member of the World Trade Organization (WTO) . More recently, in the first half of 2004, the country became a full member of the North Atlantic Treaty Organisation (NATO) and the European Union (EU).

Lithuania enjoys a stable political, economic and social environment and has experienced strong economic growth in recent years. The country's GDP grew by 8.9 per cent in 2003 and by 6.3 per cent in 2004. Foreign investment in Lithuania has also been increasing steadily and, according to the Lithuanian Development Authority, had reached €4.7 billion as of 1st January 2005 . The services sector is the largest employer, accounting for just under 55 per cent of the workforce, followed by industry, with about 27 per cent, and then agriculture, which is responsible for the rest.

The country occupies an important position and has been recognised by the EU as the prime transport centre, in the region, linking the EU with the East. In particular, the EU's transportation commission designated two routes running through Lithuania, a North-South road and rail route connecting Scandinavia with Central Europe, and an East-West route linking Eastern markets with the rest of Europe, as among the ten most important in Europe. In addition, there are international passenger airports situated in Kuanas, Palanga and Vilnius, a recently refurbished cargo airport at Siauliai, and an ice-free seaport at Klaipeda, which is connected with about 200 foreign ports.