Latvia is among the most attractive locations in Central and Eastern Europe, the German-Baltic Chamber of Commerce (AHK) economic survey 2017 reveals. Companies in Latvia want to up their investments, expect to see turnover increase and believe they will need more staff. A total of 1,734 companies took part in the survey, of which 170 were in the Baltic States.
“Almost 80 per cent of companies would opt for Latvia as a location again,” says Florian Schröder, Chief Executive Officer of the AHK. “The companies are happy with the present business situation, but every second respondent criticised the government’s measures. It remains to be seen how that will develop after the parliamentary elections next year.”
Latvian companies are on a growth trajectory: 80 per cent of companies in Latvia are expecting turnover to increase this year. This is the highest figure of the three Baltic states. Exports are expected to either rise or remain the same for 96 per cent of companies in Latvia. A total of 48 per cent of the companies surveyed also anticipate they will need more staff. 44 per cent of companies want to invest more, compared with 35 per cent in 2016 (31 per cent in 2015). German companies accounted for 4.33 per cent of foreign direct investment in Latvia in 2016. 85 per cent of those surveyed want to invest in digitisation and only 7 per cent do not deem it important to do so.