Based on an analysis by Žygimantas Mauricas, Chief Economist at Luminor Bank
In a historic shift, Vilnius has emerged not only as the wealthiest city in the Baltics, but also as the first Baltic capital to surpass the European Union average in GDP per capita. This remarkable transformation highlights Vilnius’ evolution from a city playing catch-up to one setting benchmarks for the rest of the EU.
Economic Growth: A Decade of Transformation
Preliminary 2024 data reveal that Vilnius’ GDP per capita is now 9% higher than Tallinn’s, 36% higher than Riga’s, and 5% above the EU average. Just a decade ago, Tallinn was nearly a quarter richer than Vilnius, and Riga was on par. Back then, the EU average outpaced Vilnius by nearly 50%. The current figures mark a dramatic turnaround.
What’s more, Vilnius generated €36 billion in GDP in 2024, significantly outpacing Riga (€26 billion) and Tallinn (€24 billion). Today, Vilnius’ economy is only about 10% smaller than Latvia’s total economy (€39 billion) or Estonia’s (€40 billion)—a staggering milestone for a single city.
Demographic Milestone: Largest City in the Baltics
For the first time, Vilnius has overtaken Riga as the largest city in the Baltic States. Over the past five years, Vilnius’ county population grew from 798,000 to 868,000, while Riga’s declined from 898,000 to 860,000, and Tallinn’s increased from 599,000 to 646,000. This population growth has not only boosted economic output but also reinforced Vilnius’ status as the economic heart of the Baltics.
Quality of Life: Leading the Region
Vilnius is becoming not only richer, but also a better place to live. According to the 2023 European Cities Quality of Life Survey, Vilnius now ranks among the best cities in the EU, behind only Stockholm, Copenhagen, Oslo, and Luxembourg. The city stands out for its:
- High air quality
- Low noise and crime levels
- Well-maintained public spaces and green areas
- Vibrant cultural life
This progress marks a mental and symbolic turning point. For years, Vilnius looked to other European capitals for inspiration. Now, it is becoming a model city that others aspire to emulate.
Balanced Growth: Not Just a One-City Country
Importantly, Lithuania’s growth story isn’t limited to Vilnius. Kaunas, Klaipėda, and numerous smaller cities are also expanding rapidly. Unlike Latvia and Estonia, which are highly centralised around their capitals, Lithuania is emerging as a multi-centre economy. Currently:
- Vilnius generates 45% of Lithuania’s GDP
- Riga generates 66% of Latvia’s GDP
- Tallinn generates 62% of Estonia’s GDP
This suggests greater economic balance and resilience across Lithuania.
Vilnius’ economic ascent symbolises more than just numbers—it reflects a deep transformation in mindset, ambition, and capability. And with broader regional growth accompanying its success, Lithuania’s story is no longer just about one city—it’s about an entire country on the rise.
