“In the eyes of investors, there is moderate chaos in the country, and it is unclear where this ship is being steered,” explains Arnis Sauka, professor at the Stockholm School of Economics in Riga (SSE Riga).

At the same time, 79% of foreign investors indicated that they will continue to invest in Latvia, 15% stated that they do not plan to do so, while 6% informed that it has not yet been decided and will depend on circumstances or that there is currently no need to invest.

In the Foreign Investment Environment Index, the assessment of policymakers' work is 2.7, adherence to corporate governance principles in state-owned enterprises is rated at 2.9, and in municipal enterprises at 2.6.

“The assessment of the public sector’s efficiency in proactively addressing existing challenges is 2.4. Investors believe that problems need to be solved faster,” emphasised A. Sauka.