Latvia's Investment Surge: A Promising Future for Business.

Latvia’s Investment Surge: A Promising Future for Business Competitiveness

Record Investments in 2024

In a remarkable stride towards economic growth, the Investment and Development Agency of Latvia (LIAA) has announced significant achievements and future plans that promise to bolster the nation’s business landscape. The year 2024 saw LIAA facilitating 45 investment projects worth an impressive €655.4 million, creating approximately 2,023 new jobs. This surge in investments, despite geopolitical challenges and slow growth from key economic partners, marks a 6% increase compared to the previous year.

Key Sectors and Notable Projects

The sectors benefiting from these investments include high-value-added manufacturing, information and communication technology (ICT), energy, and aviation. Notable projects include Asns Ingredient’s pea protein isolate plant in Jelgava with €114 million in planned investments, Golden Fields Factory LV’s protein production facility in Liepāja with €16 million, Tech Mahindra’s representative office in Riga creating 500 new jobs, and Norse Atlantic Airways’ business services centre in Riga.

Future Investment Plans

LIAA’s current investment portfolio boasts 166 projects valued at €10.8 billion. The agency has reorganized and tripled its staff dedicated to investment attraction, aiming to increase annual investment volumes to €1 billion within five years. The focus will be on green projects, renewable energy, circular economy initiatives, and sustainable production. LIAA maintains offices in 20 countries and plans to open new offices in Spain and Indonesia in 2025.

EU and State Investments in 2025

Looking ahead to 2025, over €250 million in EU and State investments will be available to boost business competitiveness. The funding will support various initiatives, including high-value-added investments, innovation, digitisation, energy efficiency, and export capacity. Key allocations include €122.8 million for business support measures, €89.7 million for innovation development, €44.3 million for digitisation, and €73.3 million for productivity and export promotion. Additionally, €26.5 million will be invested in energy efficiency, and €21 million will go towards modernising Latvia’s electricity networks. The Freeport of Riga will receive €16.6 million for offshore wind technology infrastructure development. The 2025 State Budget also includes €7.8 million for export and investment attraction activities.