According to the conducted by Foreign Investors' Council in Latvia (FICIL) in collaboration with SSE Riga, majority of companies are affected by the Covid-19 crisis and investors affirm the need to make strategic, long-term decisions to minimize the negative implications on the overall business climate in Latvia.

As emphasised by the authors of the report, SSE Riga professor Dr. Arnis Sauka and FICIL head of policy Linda Helmane, the aim of the compield foreign investors opinions is to provide the policymakers with information that can contribute to making fair, strategic and evidence-based decisions on recovering from the current crisis.

The foreign investors operating in Latvia shared their insights and viewpoints regarding the existing as well as potential challenges for businesses, while also providing recommendations for the Government on what should be done to stabilise the business environment in Latvia during the current situation. The results showed that majority of the companies surveyed were negatively affected by the Covid-19 pandemic and the precautionary measures due to the State of Emergency, ranging from -5% to a full -100% decrease in demand for their products or services.

Respondents highlighted various challenges they are faced with currently, such as ensuring health and safety of their employees, customers and clients, providing possibilities for working remotely, as well as continuing business in general in the current situation where many transactions and operations have been suspended. As for the long-term concerns for business recovery of the crisis, companies emphasise the challenge of retaining employees and clients, loss of revenue and decrease in business activities, uncertainty of mobility restrictions, financial sector development, demand for products and services, as well as change in overall behaviour of consumers and businesses.

To view the full report