Translated using ChatGPT service.
On May 8, during the economic debates held in the Saeima, Minister of Economics Viktors Valainis presented his vision for the transformation of Latvia’s economy, setting an ambitious goal—to make the country a competitive and resilient player in the global market. Latvia’s future growth will be based on five strategic directions, ranging from the defense industry and green energy to the development of capital markets, regional growth, and the implementation of modern governance.
The Minister introduced the informative report “On the Economic Development of Latvia” to those present at the Saeima economic debates.
"The transformation of Latvia’s economy is based on five strategic directions—defense industry, green energy, capital market development, regional growth, and the introduction of modern governance. Our goal is to create an environment where it is possible to invest more than €3.7 billion, promote export-oriented manufacturing, and make Latvia a home for businesses capable of attracting talent from both Latvia and abroad. Therefore, we must also develop the rental housing market, ensure quality infrastructure, and reduce the bureaucratic burden. We must also address difficult and less popular issues—only in this way can we create sustainable growth. And it is possible if we truly listen to entrepreneurs, their organizations, strategic partners, and foreign investors,” emphasized Minister of Economics Viktors Valainis.
Valainis noted that recent disruptions—including U.S. tariffs and downgraded economic growth forecasts—pose challenges, yet Latvia’s goal of doubling its economy remains unchanged. He also emphasized the need for further efforts to boost exports, particularly by supporting companies that have so far been focused mainly on the domestic market.
Latvia’s economic development vision is built on five strategic pillars that will form the foundation of national growth in the coming years:
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Development of the defense industry, creating military production capacities and attracting at least €200 million in investments. A dedicated investment fund and support program for local companies will be established.
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Green energy, including investments in hydrogen technologies and wind farms. Latvia aims to become a stable electricity-exporting country, offering the lowest electricity prices in the region for producers and exporters.
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Capital market development and expanded access to financing. By 2029, the goal is to double foreign investments in company equity and attract an additional €1.5 billion into the national economy.
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Strengthening regional development and the potential of the capital city, with the aim of creating well-paid jobs and quality infrastructure across the country.
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Public administration reform, targeting a 25% reduction in bureaucracy and modernization of services to facilitate project implementation for entrepreneurs.
This year and next, growth will be driven by a more favorable external environment, EU investments, and initiated reforms. However, long-term development will depend on the pace of reform implementation and external factors.
The Minister also highlighted the reorganization of the Investment and Development Agency of Latvia (LIAA) and foreign visits that have already delivered results—for example, Germany currently ranks first in terms of investment attraction. Valainis also paid particular attention to human capital issues, stressing the need for not only skilled talent in the labor market but also support for employer organizations.
To achieve the set goals, Valainis emphasized the necessity of effective reforms—such as the reform of port governance. Another crucial step will be the adoption of the Construction Law and Environmental Impact Assessment Law in the Saeima.
It has already been reported that planned investment volumes for the year exceed €3.7 billion, including €1 billion from investment projects attracted by LIAA, another €800 million allocated for business development, and €200 million for housing availability and building insulation. These figures reflect not only ambition but also concrete instruments for achieving it.
