Last year, investors’ opinion of the competitiveness of Latvia’s economy improved for nearly all indexes, as reported by EY Latvija representatives.
At the same time, investors say there is a growing need for national level marketing and downstream improvements to the internal ecosystem.
From a total of 17 different factors investors are the most positive about Latvia’s defense policy, monetary policy and energy resource accessibility. Investors are the most negative about Latvia’s demographic situation, labor force accessibility and social guarantees system.
The study generally reveals that over the course of the previous year the assessment of 15 factors has improved. Results have worsened only for investment-related business culture development and general attitude towards investors.
Nevertheless, venture capital investors say the main factor that impedes the development of Latvia’s investment market is the shortage of quality offers and national level marketing of Latvia as an attractive investment market. These factors are followed by standing challenges in finance sector and the shortage of an investment market development-focused strategy.
“We can see the opinion of investors working here about Latvia’s competitiveness continues to improve. Nevertheless, investors still point to the shortage of quality investment projects,” says Guntars Krons, EY partner in the Baltic States.
“To develop this, it is necessary to continue marketing state support for the investment ecosystem – education, research, start-up incubators, and business development funds. On top of that, it is necessary to enhance the marketing of the country as a destination for investments,” notes Krols.
“Comparatively speaking, Latvia’s investment environment is similar to the sports industry – we have the talent, but it needs to be found, developed and presented on the international arena to find new opportunities to truly assess accomplishments,” EY representative explains.
55% of venture capital investors believe the attractiveness of Latvia’s market has improved when compared to what it was like three years ago. 53% of investors admit having plans to increase investments in Latvia. (BNN/Business World Magazine)