Foreign Investors' Council in Latvia launched its report about the competitiveness of Latvia "FICIL Sentiment Index" on 24 September at 12:30 in the Stokholm School of Economics in Riga, 4a Strelnieku Street.
FICIL SENTIMENT INDEX 2015: FICIL Sentiment Index Report 2015.pdf
Ģirts Greiškalns, FICIL Executive Director, about the FICIL Sentiment Index:
Foreign Investor's Council in Latvia represents thirty largest companies from various countries and sectors that have made significant investments in Latvia as well as twelve international chambers of commerce. Our corporate member companies represent approximately 30% of all foreign direct investment in share capital of companies in Latvia and contribute around 15% of total budget revenues. The last few years haven't been easy for Latvia: first, the economy was hit hard by the financial crisis, followed by serious complications in geopolitical scene in neighbouring countries. This has had implications on investment flows as well - investors have become more cautious and FDI flows have declined recently. We have seen another trend - expansions have become more important part of investments as opposed to investments into new sites.
Investors decide to establish operations in a particular place due to some fundamental determinants, such as availability of skilled workforce, access to resources, market size or increase in productivity. There are also incentives offered by the Governments that are being considered but they usually come secondary. Unfortunately, due to many reasons, Latvia does not stand out as preferred or obvious choice of investment. So, let's think what could and should be done to keep investments coming and investors investing. The positives are many: it will bring jobs and create economic spillover, it will make existing companies more competitive and the quality of life higher. Having well functioning and prosperous economy which is well linked with the global world may help to mitigate some of the geopolitical challenges we face.
By conducting the survey of existing investors in Latvia in cooperation with SSE Riga we get a valuable insights on the investment climate in Latvia. Companies that have made the decision to invest in Latvia share with us their analysis of investment climate Latvia, their plans for future investments and their key concerns. This, I hope, will serve as a good tool for improving the overall investment climate in Latvia.
The mission of the Foreign Investor's Council in Latvia is to to improve the business environment in Latvia through active dialogue with the government. We want to see existing investors investing more and certainly many more investors coming to Latvia. On behalf of the FICIL, I hope that the FICIL sentiment index will provide a good material for fostering our dialogue with the Government and achieve a long term and sustainable economic growth.