Latvia is setting ambitious economic goals for 2026, aiming to attract EUR 1 billion in foreign investment and increase exports by EUR 300 million. These targets were outlined by Ieva Jegere, Director of the Investment and Development Agency of Latvia (LIAA).
Focus on Growth Sectors
Export and Tourism Initiatives
The LIAA’s plan for 2026 prioritizes high value-added sectors and expanding into key markets. This includes participation in 70 international exhibitions, support for trade missions, and grant programs for export activities. In the tourism sector, the country intends to welcome an additional 150,000 foreign visitors through targeted communication campaigns, particularly focused on business tourism, and leveraging increased visibility from sources like the Michelin Guide.
Fintech and Green Energy
Jegere highlighted the potential of the fintech sector, anticipating growth following the issuance of the first two licenses to operate in the cryptoasset market (MiCA) in 2025. This development could allow Latvian companies to engage with cryptoassets throughout the EU. Further development is also expected in green energy projects, information and communication technology exports, and the bio-economy.
Challenges and Opportunities
Geopolitical Considerations
Despite the optimistic outlook, Jegere anticipates continued investor caution due to ongoing geopolitical risks. However, she believes Latvia’s stability and access to green energy and sustainable supply chains will attract investment. This demand for secure locations is expected to lead to an increase in new projects.
Infrastructure and Talent Gaps
The LIAA acknowledges key challenges, including the need to improve visibility and attract skilled labor. While Latvia offers a highly skilled workforce, meeting large-scale demands – such as 500 engineers for a single investor – presents a hurdle. A streamlined system for attracting qualified professionals is seen as essential. Additionally, the availability of suitable infrastructure, including industrial parks, logistics facilities, and green energy capacity, remains a concern.
Frequently Asked Questions
What is the LIAA’s investment target for 2026?
The Investment and Development Agency of Latvia (LIAA) aims to attract EUR 1 billion in investments next year.
Which sectors are expected to see the most growth?
Fintech, green energy projects, the export of information and communication technology services, and the bio-economy are all expected to develop.
What are the main challenges Latvia faces in attracting investment?
The main challenges are visibility, attracting highly skilled professionals, and ensuring adequate infrastructure, including industrial offers, logistics facilities, and green energy capacity.
As Latvia pursues these ambitious economic goals, how might international events influence the country’s ability to attract investment and achieve its targets?