Why International B2B Companies Should Watch Latvia

Latvia returned to economic growth in 2025 while investment rebounded sharply. At the same time, its digital infrastructure, startup ecosystem and emerging-technology agenda continue to develop.

Investment has rebounded

According to the European Commission, Latvian investment grew 9.8% in 2025, supported by private investment, EU funds and defence spending. Investment is forecast to continue growing by 3% in 2026 and 2027.

Digital infrastructure is a competitive strength

Latvia's 2026 Digital Decade report highlights strong 5G coverage above the EU average, a growing startup ecosystem and cross-Baltic collaboration in quantum and semiconductor technologies. Policymakers are also increasing their focus on AI adoption and cybersecurity.

The opportunity

For international B2B companies, Latvia can offer opportunities around digitalisation, cybersecurity, AI, infrastructure and business productivity. It is particularly useful to test Latvia as part of a combined Baltic campaign rather than evaluate the market in isolation.