The document summarizes the state of the Lithuanian economy based on a monthly newsletter from Swedbank's Economic Research Department. It finds that while corporate profits are increasing, investments in fixed tangible assets continue to decline sharply. However, improving economic indicators and increasing capacity utilization suggest investments will need to increase to boost productivity and competitiveness. Retained earnings from higher profits and tax incentives are expected to be important sources of financing the needed investment growth in 2011. Continued recovery in domestic demand and exports also point to a gradual rise in credit availability and investments.