Following independence Lithuania has made much progress in developing the institutions and framework conditions of a modern market-based economy, which provided the basis for Lithuania’s success in narrowing the gap with the more advanced countries in the OECD. While in 1995, Lithuania’s gross domestic product (GDP) per capita stood at onethird of the OECD average, it exceeded two-thirds in 2015. Thanks to its economy’s high degree of flexibility, underpinned by a generally favourable regulatory framework, Lithuania weathered the crisis of the late 2000s better than many peer countries.