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Economic Situation in the Baltics - Episode II: Latvia's future as investment and growth region
Latvia 's future as investment and growth region Latvia, since long time, has been considered as one of the EU’s most advatageous hubs for foreign investment. The main reason for this situation, among others, is that it directly supports investors and is home to a competitive tax system with special incentives for foreign and domestic capital influx. Together with liberal economic policies and a developed infrastructure, Latvia plays a major role in making the Baltic region an important investment centre.

Nevertheless, investors still point towards problems with the quality of laws that govern entrepreneurship as well as stability of the financial sector and communication with policy-makers. Geographical proximity to Russian Federation, after its aggressive invasion of Ukraine, is also perceived as higher risk and requires decisive political engagement.

What are the prospects for Latvia’s greater economic competitiveness and of the Baltic region as a whole? What is needed for Latvia to continue inspire investors? These questions and more will be discussed in the upcoming episode of the three-part Baltic debates collection of SME Europe.
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