The international business consulting firm EY has conducted an annual survey of foreign investments in Estonia, finding that there were eight new foreign investments projects in Estonia, the same number as in 2023.

“Our survey shows that foreign investment projects created 227 new jobs in Estonia, which was 82% less than in 2023, when 1,230 new jobs were created with the support of foreign investment,” EY declared in a news release. “While the number of projects in Estonia has remained relatively stable over the course of the years, the number of created jobs is highly volatile and depends largely on the scope of the various projects.”

The survey shows that Latvia was the most successful Baltic country in attracting foreign investments last year, with 33 new projects and 1,937 jobs. Lithuania attracted 26 new FDI projects, creating 1,518, leaving Estonia behind with the fewest projects and new jobs.

Latvia was also the only country of the three in which the number of projects and the number of crated jobs increased in comparison to 2023, by 50% and 53% respectively. In Lithuania, by contrast, the number of projects declined by 7% and the number of jobs fell by 10%.

The EY news release cited a partner in EY Estonia, Ranno Tingas: “EY’s latest survey highlights three main factors which influence Estonia’s attractiveness as an investment destination – its macroeconomic situation, incentives offered by other countries, and the geopolitical backdrop. If we wish to remain competitive in attracting foreign investment, we must work together with the government and with businesses to maintain a simple and predictable tax environment whilst also restoring trust in our advantages as a digital state. The question is not only what we have done well so far, but also what our next step and long-term strategy should be.”

The EY survey only reflects publicly known and confirmed foreign investment projects, but there is also the Estonian Business and Innovation Agency (EIS), which has released a report to say that Estonia experienced 21 positive investment decisions in 2024, with a total value of EUR 254 million and the expectation of 600 new jobs to be created.

The number of new foreign investment projects across Europe decreased by 7% in 2024 as against the previous year, with a total of 5,349 projects in all. This was the second consecutive year of decline and the lowest figure for the past nine years. EY experts attribute this to slow economic growth, high energy prices, and geopolitical uncertainties, but the overall backdrop for Europe has improved significantly over the last few months, so there is hope that we will see a more positive trend in one year’s time.

The largest declines were registered in Europe’s largest economies, with France having 14% fewer new projects in 2024, the UK having 13% fewer, and Germany experiencing a drop of 16%. At the same time, however, some countries experienced significant improvements – 15% for Spain, 13% for Poland and a truly staggering 86% for Denmark.

The EY European Attractiveness Survey is a comprehensive annual report based on the EY European Investment Monitor database. The survey is supplemented with a survey of investors that is conducted in partnership with FT Longitude. 550 international investors, including 150 in the Baltic States, were surveyed between January and March of this year.

Source: BNS

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