Latvia Sets New Investment Record as Foreign Direct Investment Tops €1 Billion in 2025

Latvia has just recorded its strongest year ever for foreign direct investment, with more than €1 billion attracted in 2025, marking a historic milestone for the country’s economic opening and international competitiveness. With active support from the Investment and Development Agency of Latvia (LIAA), 31 new investment projects were launched last year, bringing a combined project value of €1.01 billion and expected to create around 1,350 new jobs.

This surge in investment activity reflects growing confidence from global investors in Latvia’s strategic value proposition, which includes a skilled workforce, competitive cost base, strong logistics and connectivity advantages, and an increasingly supportive business environment. Major sectors drawing international capital included bioeconomy, smart energy, manufacturing, digitisation, defence and technology services, showing that Latvia’s attractiveness extends beyond single verticals to a broad range of strategic industries.

Among the notable investment commitments are large projects in renewable energy and advanced manufacturing, and the selection of Riga as the site for a new European business services centre by a global technology firm. These developments highlight how Latvia is successfully diversifying its foreign investor base, attracting interest from countries across Europe, North America and Asia.

Investment results from 2025 also demonstrate Latvia’s competitive edge in mobilising capital even as global FDI flows remain uneven, with specific momentum in sectors like clean energy, digital services and high‑value manufacturing. The leadership of LIAA in promoting Latvia internationally and facilitating investment planning has been a key factor, ensuring investor inquiries are responded to swiftly and projects are transitioned into execution with clarity.

This record achievement is more than just a single year’s success. It points to a shift in how Latvia is perceived on the European and global stage, not just as a destination for cost‑competitive operations, but as a hub where innovation, sustainable industry and scalable projects can take root and expand.

Source: https://labsoflatvia.com/en/news/latvia-sets-investment-record-over-e1-billion-in-fdi-attracted-in-2025