- 75% of Latvian firms invested in 2025, up from 69% last year.
- Nearly half of firms invest in new products – well above the EU average.
- Firms are actively investing in climate risk solutions but find climate regulations more challenging than their EU peers.
- Latvia leads Europe in gender equality, with women in nearly half of senior roles.
Latvian businesses are betting big on growth and innovation, according to the European Investment Bank Investment Survey (EIBIS) in 2025. While most act on climate risks, tougher green standards are still seen more as a risk than an opportunity.
In 2025, three out of four Latvian companies invested in their business – a big step up from 69% last year, even if still behind the EU average of 86%. Last year, most spending went into replacing old equipment (38%), while only 22% was for creating new products or services. Now the focus is changing: 40% of firms plan to grow and expand, and just 17% aim to replace old equipment. This shows that Latvian businesses are moving from maintenance to innovation and growth.
Latvian companies stand out for innovation. Nearly half (45%) are investing in new products, processes or services – well above the EU average of 32%. Three out of four firms use at least one digital technology, and more are combining several tools than ever before. Generative AI is also gaining ground: 38% of firms use it systematically, mostly to improve internal processes.
Latvian businesses perceive some challenges with transitioning towards greener models. Firms are actively investing in climate risk solutions, prioritising energy efficiency and waste reduction, even as tougher green standards are still seen more as a risk (44%) than an opportunity (6%) – far below the EU average.
Latvian firms face hurdles such as uncertainty, skills shortages and high energy costs, while exporters struggle with complex EU rules. Most companies fund growth from their own resources, showing strong financial independence, and about 45% also use bank finance. Few complain about borrowing costs, though smaller firms feel more constrained.
Despite these hurdles, Latvia leads Europe in gender equality: women hold 47% of senior roles, nearly double the EU average, and 22% of company owners are female.
“Latvia’s firms are racing ahead in innovation and digitalisation, boosting competitiveness and resilience. The next big step is turning climate challenges into opportunities by investing more in renewables and sustainable solutions. Latvia can lead the region by pairing tech progress with climate action – a solid pathway for long-term growth”, said EIB Vice-President Karl Nehammer.
Background information
The EIB Group Survey on Investment, which has been carried out since 2016, is a unique annual survey of some 12 000 firms. Data for the latest edition were collected in mid-2025 from companies in all EU Member States. The survey also includes a sample of businesses in the United States. It gathers data on company characteristics and performance, past investment activities and future plans, sources of finance, financing hurdles and other business challenges such as climate change, digitalisation and international trade. In Latvia, 400 firms were interviewed for the 2025 edition.
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.
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