Foreign investors assess the investment climate in Latvia with the lowest score of 1.9

Foreign investors’ assessment of the overall investment climate in Latvia reached its lowest rating of 1.9 points out of 5. In comparison to 2022, the rating has fallen by 0.4 points. This is the conclusion of the “Sentiment Index 2023” research by the Foreign Investors’ Council in Latvia (FICIL) and Dr. Arnis Sauka from the Stockholm School of Economics in Riga (SSE Riga).

Investors rate the investment climate in Latvia with the lowest rating in the history of the research. When asked about the reasons for the low assessment, most investors highlight the geopolitical situation, as well as, the lack of skilled workforce, high labour costs, and the quality of policies. At the same time, investors assessed the work of policymakers in attracting investment with 2.4 points on the 5-point scale. That is the lowest rating since 2017. While communication with the policymakers has improved, as has their willingness to open a dialogue, investors point to a lack of real action and changes. The lack of vision for the country prevents Latvia’s economic competitiveness.

Read the full FICIL press release HERE.