This much is concluded by Stockholm School of Economics in Riga Prof. Arnis Sauka in a study conducted by Foreign Investors’ Council in Latvia (FICIL) titled Foreign Investment Environment Index, presented on Monday, the 24th of April.
In the five-point system Latvia’s investment environment’s score was 2.3 in 2022. The year prior it was 2.9, in 2020 it was 2.7 and in 2019 it was 2.6.
Sauka said the poorest score was in 2016.
“Investors believe the country is in calm chaos now, and it is unclear which direction the ship could take,” said Sauka. In the foreign investment environment index the score given the work done by policy makers is 2.7. The score for compliance with corporate management principles in state capital associations is 2.9 and that of municipal capital associations is 2.6.
The efficiency of the public sector when it comes to proactive resolution of existing challenges is given a score of 2.4.
Investors believe problems have to be resolved faster, explained Sauka.
Cooperation between investors and the public sector is given a score of 3.2. However, investors say that communication still stumbles, the professor said.
The priorities mentioned by foreign investors for reforms include the efficiency of the public administration, meaningful digitalisation and data connectivity, promotion of energy independence, achievement of objectives for sustainability, as well as improvement of the education system.
FICIL Foreign Investors Environment is an annual study. 2023 is the seventh time it has been performed in Latvia. It scores the development of the investment climate in Latvia from the perspective of foreign investors based on the accomplishments of policy-makers and challenges that exist in the business environment.
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