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The Foreign Investors’ Council in Latvia (FICIL) has produced its first ever research report on the investment climate across all the three Baltic States, FICIL Sentiment Index.
“Despite the complicated geopolitical situation, investors appreciate the political and economic stability of Latvia and the Baltic region as a whole – we have been able to cope with the biggest challenges of recent years. We also need to learn to appreciate more of what we have achieved and exploit our strengths – small and flexible economies, advanced digital services and infrastructure, globally acknowledged achievements in innovation, ICT, quantum technologies. Investors welcome Latvia’s achievements in drone technology development, the development of local defence industries, and thereby – in our own economy.
The Latvian diplomatic service actively supports our businesses abroad, and we see tangible results – an increase in export, especially in those non-EU countries where we have embassies. In Latvia, for its part, we have all the necessary tools to support foreign investors. Together, in close cooperation between the public administration, the private and academic sectors, we need to deliver – talk less and do more,” Foreign Minister Baiba Braže emphasized in her address to foreign investors, businesses, the Baltic states ministers for economy and other officials at a high-level event on the investment climate in the Baltics on 26 May 2025.
According to the study, in the last quarter of 2024, foreign direct investment in Latvia has reached 26.3 billion euro, exceeding the figures for the last quarter of 2021 by 5.1 billion euros. Overall, the balance of foreign investment has increased by 5.6% or 1.4 billion euros last year. 50% of the current investors interviewed have further investment plans in the Baltic region this year.
“Regional security and resilience, support to Ukraine, improvement of regional connectivity, and the attraction of investments are the priority topics for tripartite co-operation among the Baltic States. In today’s changing security environment, close regional cooperation is not a political option, it is a must: moreover, investors from other countries see the Baltic region as a single market. The flexibility of our comparatively small region facilitates rapid adaptation and the development of innovations, our countries must make use of that.”
Further information:
- In February 2025, FICIL marked its 25the anniversary.
- This year marks a decade since the Council has been conducting research based on investors’ experience; its new edition is the first ever to explore investment climate across the three Baltic States.
- The report was produced by the Foreign Investors Council in Latvia (FICIL) in cooperation with the Riga School of Economics (SSE Riga) and Riga Business School (RBS) of Riga Technical University. Its authors are FICIL Executive Director Tatjana Guzņajeva with support from the political expert Arnolds Arnis Ābelīte. Methodological assistance was provided by Professor Arnis Sauka from SSE Riga, while Dr Claudio Andres Rivera from the RBS contributed to the drafting of the reports. In total, 118 companies participated in the study – 58 from Latvia, 32 from Estonia and 28 from Lithuania.
- The research results are important for businesspeople, potential investors, decision-makers, and members of all the Baltic States’ governments.