Latvia

Bordering Estonia, Lithuania, Russia and the Baltic Sea, this small country of less than 2 million is a member of the EU and the Eurozone, NATO, the Organization for Economic Co-operation and Development (OECD), and the World Trade Organization (WTO). With moderate but steadfast growth rates particularly driven by its manufacturing and services sectors, the Latvian government actively pursues foreign investment through liberal economic policies and incentives, as well as by leveraging its status as a transportation and logistics hub between the European markets and Central Asia. The country’s high level of digitization, efficient business regulations and competitive tax rates further enhance its appeal.

However, weaknesses persist. Among them are an aging population, the migration of skilled workers, a large informal sector, and a lack of transparency in the operations and expenditures of state-owned companies.