## Potential Growth and Migration: Republic of Lithuania

_Selected Issues Papers, October 13, 2025_

## Source details

**Canonical URL:** [Potential Growth and Migration: Republic of Lithuania](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/10/10/potential-growth-and-migration-republic-of-lithuania-571144)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2025/10/10/potential-growth-and-migration-republic-of-lithuania-571144/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2025/10/10/potential-growth-and-migration-republic-of-lithuania-571144/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2025/10/10/potential-growth-and-migration-republic-of-lithuania-571144/bundle-manifest.json)

## Bibliographic details
- Authors: Lukas Boer
- Published: October 13, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229026826.018

---

### Overview
- Recent immigrants have been successfully absorbed into the Lithuanian labor market.
- Legislative amendments have enabled easier migration for high-skilled workers despite the reduction of non-EU workers quota in 2025.
- The analysis shows immigration can play a role in mitigating the impact of aging on labor force and support potential output growth.
- Given uncertainty about immigration developments, addressing remaining constraints limiting capital deepening and TFP growth would be crucial.

### Key findings
- Immigration can mitigate the impact of aging on the labor force.
- Immigration can support potential output growth.
- Recent immigrants have been successfully absorbed into the labor market.
- Legislative amendments have enabled easier migration for high-skilled workers even though the non-EU workers quota was reduced in 2025.

### Policy recommendations
- Continue focusing on integrating migrants in the most productivity-enhancing way possible.
- Allow the participation of foreign professionals in sectors with the largest shortages.
- Address remaining constraints limiting capital deepening and TFP growth given uncertainty about future immigration developments.

### Uncertainties and constraints
- Uncertainty about immigration developments makes progress on non-labor channels of growth important.
- Constraints limiting capital deepening and TFP growth need to be addressed to complement migration-driven labor force support.

*Selected Issues Paper No. 2025/138 — "Potential Growth and Migration: Republic of Lithuania", Lukas Boer*

---

## Content in this bundle

- **Sipea2025138**
  - [Sipea2025138 (Markdown version)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025138.pdf.md){rel="alternate" type="text/markdown"}
  - [Sipea2025138 (PDF)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025138.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/10/10/potential-growth-and-migration-republic-of-lithuania-571144_