“Deficit: Opportunity or Risk? How Can the State Support the Economy Wisely?”
The Danish Chamber of Commerce in Latvia participated—together with the Irish, Swiss, and Swedish Chambers of Commerce, as well as Gren and BDO Latvia—in the first joint chamber event of 2026.
The meeting brought together speakers from the Ministry of Economics, the Saeima, the Bank of Latvia, BDO, and the business community. The discussion focused on Latvia’s fiscal strategy, investment climate, and long‑term competitiveness.
Key insights from the discussion
• Latvia borrowed significant amounts in 2025, and a slowdown in borrowing is expected over the next three years.
• Stronger oversight is needed to ensure that borrowed funds are invested productively rather than simply spent.
• A substantial share of the budget is currently allocated to defence.
• Developing human capital must remain a top priority for attracting foreign investors.
• The state should increase investment in education at all levels.
• Latvia remains slow in approving foreign investment; both state institutions and banks need to improve their processes.
• Slovenia’s example was highlighted, where a state fund also invests in private companies.
• Private investors should have equal opportunities when competing with state‑owned enterprises.
• For example, private investors often cannot compete with Latvenergo when bidding for various projects
