Investing in Latvia in 2026
Europe & Central Asia
72
Score
Moderate Investment Destination
Growing economy with manageable risks - suitable for diversified portfolios
Latvia earns an investment score of 72/100, placing it in the moderate category for global investors. Growing economy with manageable risks - suitable for diversified portfolios. The country's standout dimensions are political stability (75/100) and business climate (72/100), with overall GDP of $43.5B and per-capita output of $23,250. Growth is running at 2.0% with 2.8% of GDP arriving as foreign direct investment. Inflation is contained at 3.2%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around IT & Services (sector score 75/100, currently growing), which represents 7.2% of GDP. Trade openness sits at 123% of GDP, a useful proxy for how integrated Latvia is with the global economy.
How Latvia's investment score has evolved over time
IT & Services
7.2% of GDP, growing
Timber & Wood
5.8% of GDP, stable
Transport & Logistics
8.5% of GDP, stable
Manufacturing
12.5% of GDP, stable
World Bank Governance Indicators (-2.5 to +2.5, higher is better)
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Is Latvia a safe country to invest in?
Latvia carries a moderate risk rating with an overall investment score of 72/100. Growing economy with manageable risks - suitable for diversified portfolios. Sub-scores: economic health 70/100, political stability 75/100, business climate 72/100, financial strength 70/100, growth potential 68/100.
What is Latvia's sovereign credit rating?
Latvia holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.
What are the strongest sectors for investment in Latvia?
The top investment sectors in Latvia are IT & Services, Timber & Wood, Transport & Logistics. IT & Services leads with a sector score of 75/100 and represents 7.2% of GDP. Its current trend is growing.
What is Latvia's GDP growth rate?
Latvia's most recent GDP growth was 2.0%, with total GDP of $43.5B and GDP per capita of $23,250. Inflation is running at 3.2% and the current account balance is -3.5% of GDP.
How does Latvia score on governance and rule of law?
On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Latvia scores: political stability 0.4, rule of law 0.8, corruption control 0.3, and regulatory quality 1.1.
Can foreigners invest in Latvia?
Most industries in Latvia are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.
What is foreign direct investment (FDI) like in Latvia?
Foreign Direct Investment in Latvia runs at 2.8% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 123%. These figures show how integrated Latvia is with the global economy and how welcoming it has been to international capital.
What is the public debt level in Latvia?
Latvia's government debt stands at 44% of GDP. This is a relatively conservative debt load, supporting fiscal flexibility.