Foreign investment projects launched in Latvia in 2025 created 1,015 new jobs, accounting for 46% of all jobs created by such projects in the Baltic states. This was the highest result in the Baltics, according to the 2026 European Attractiveness Survey by international professional services firm Ernst & Young (EY).
A total of 28 new foreign investment projects were launched in Latvia last year. Lithuania recorded 30 projects, creating 887 jobs, while Estonia had seven projects that generated 306 new jobs. Across the Baltic states, a total of 65 projects were launched, creating 2,208 new jobs.
Thus, Latvia accounted for 43% of all new foreign investment projects recorded by EY in the Baltics, while these projects generated 46% of all new jobs created by such projects in the region.
According to the Investment and Development Agency of Latvia (LIAA), the survey results demonstrate Latvia’s ability to compete for investment projects that make a significant contribution to employment. At the same time, they highlight the conditions Latvia needs to strengthen in order to attract increasingly large and technologically sophisticated projects.
“The EY survey provides an independent international assessment of Latvia’s competitiveness in attracting investment. Particularly significant is the fact that projects launched in Latvia created nearly half of all new jobs generated by foreign investment projects in the Baltics. This demonstrates Latvia’s ability to attract projects that make a substantial contribution to employment. The next task is to increase the economic returns from these projects by attracting more technology-intensive investments that create well-paid jobs, promote exports and integrate Latvian companies into international supply chains,” emphasises LIAA Director Ieva Jāgere.
The EY survey ranks Latvia seventh in Europe in terms of the number of foreign investment projects per capita and eighth in terms of the number of jobs created by these projects per capita.
Investors positive about the Baltic region’s growth potential
Despite a more cautious investment environment in Europe, investors remain positive about the medium-term development prospects of the Baltic states. Overall, 69% of respondents expect the investment attractiveness of the Baltic states to increase over the next three years.
The survey also identifies the factors investors consider when assessing Latvia as a potential investment destination. Tax competitiveness is considered an important factor by 34% of investors, energy costs by 26%, and political stability and macroeconomic conditions by 24%.
At the same time, 42% of investors cite the geopolitical situation as a significant risk, 28% point to rising business costs, and 26% identify a shortage of the necessary skills. According to LIAA, these findings underline the need to strengthen energy competitiveness, talent availability and the predictability of the business environment.
Investment in artificial intelligence and defence grows fastest
The overall investment environment in Europe became more cautious in 2025. EY recorded 5,026 new foreign investment projects across 47 European countries, down 7% from 2024.
At the same time, investment activity increased rapidly in strategically important technology sectors. The number of foreign investment projects related to artificial intelligence in Europe increased by 96% year-on-year, while the number of projects in the defence sector rose by 84%. Defence-related projects created nearly 7,000 new jobs.
These trends are in line with Latvia’s investment attraction priorities. LIAA is particularly focused on investment projects in the bioeconomy, smart energy, digital technologies, smart materials and photonics, biomedicine, as well as defence and dual-use technologies.
“At a time when investment activity in Europe is declining, Latvia’s performance stands out not only in the Baltics but also at the European level. For the second consecutive year, Latvia is the Baltic leader in the number of jobs created by foreign investment projects, demonstrating the country’s ability to translate investment into a tangible economic contribution. The next task for Latvia and the Baltic region as a whole is to consolidate this advantage by providing investors with a predictable business environment and the ability to rapidly turn investment plans into actual projects. At the same time, investment in skills, technology and artificial intelligence infrastructure, as well as sectors such as defence, energy and digital technologies, will become increasingly important,” says EY Baltic Partner Guntars Krols.
