A total of 118 companies participated in the research, including 58 from Latvia, 32 from Estonia, and 28 from Lithuania. Participating companies met the criteria of having at least 50% foreign capital and an annual turnover exceeding EUR 145,000.

The study confirms that, despite geopolitical challenges and growing security concerns in the region, foreign investors remain optimistic about the investment climate in the Baltics. At the same time, they stress the need for decisive action from policymakers, particularly in the areas of human capital development, digital transformation and more efficient use of public resources.

Key findings include:

  • Human capital as a priority
    Across all three Baltic states, investors identify the lack of talent and the mismatch between the education system and labour market needs as one of the most pressing challenges.
  • Reducing bureaucracy and increasing budget efficiency
    Particularly in Latvia, investors call for bold reforms in public administration, including institutional consolidation and the setting of transparent and measurable targets.
  • Opportunities in digitalisation and innovation
    Estonia is recognised as a regional digital leader. Latvia is seen to have strong potential in this area, which has not yet been fully communicated or utilised.
  • Strategic value of Baltic cooperation
    Investors emphasise the importance of closer cooperation among the Baltic states, especially in defence, energy and infrastructure.
  • A new geopolitical reality
    Investors urge both the EU and national governments to adapt to the evolving geopolitical environment, foster regional partnerships and strengthen the Baltics’ capacity for security and growth.

The report was prepared by the Foreign Investors Council in Latvia (FICIL) in collaboration with the Stockholm School of Economics in Riga (SSE Riga) and RTU Riga Business School (RBS). It was led by FICIL Executive Director Tatjana Guznajeva, with input from policy expert Arnolds Ābelīte, methodological support from Professor Arnis Sauka (SSE Riga), and contributions from Dr. Claudio Rivera (RBS). The final version was reviewed by FICIL Board Chair Reinhold Schneider and Vice-Chair Zlata Elksniņa-Zaščirinska.

The report is available on the FICIL website: https://www.ficil.lv/2025/05/27/ficil-publishes-the-foreign-investors-sentiment-index-2024-the-baltic-states-edition

Video recording below from the pan-Baltic high-level conference “Beyond Borders: Investment & Security in the Baltics,” held on May 26, 2025, featuring the presentation of the FICIL Sentiment Index 2024 by Professor Arnis Sauka, followed by a panel discussion on investment trends in the region.