Press Release
German investors commit to the Baltic region
German-Baltic Chamber of Commerce (AHK) conducted the annual business survey of German investors from 15 March to 16 April. The survey was conducted simultaneously in 16 countries and more than 1400 entrepreneurs took part, including almost 100 from Estonia, Latvia and Lithuania.
This year's survey also looked separately at the economic consequences of the pandemic and the results show a relatively rapid economic recovery. 20% of the companies surveyed in Latvia and Estonia had already reached their pre-corona turnover in spring 2021, while in Lithuania almost half of the companies surveyed had already reached their pre-corona turnover in spring. By the end of the year, this proportion is also expected to rise to more than half in Estonia. Companies in Latvia are somewhat more cautious with their forecasts and only a third of the companies surveyed in Latvia expect to return to their pre-coronavirus turnover this year. However, around 30 per cent of the companies surveyed in Latvia will probably not reach pre-crisis levels until 2023 or even later. In Estonia, only 12% of the companies surveyed make such late forecasts - and in Lithuania only 3%.
Almost none of the companies surveyed in Latvia are entirely satisfied with the government's performance in mitigating the economic consequences of the coronavirus pandemic. Some respondents in Estonia and Lithuania are, although these countries experienced worse epidemic waves and in Lithuania - also much stricter restrictions.
The risk factors are broadly similar in the Baltic countries. Concerns about a shortage of skilled labour are at the forefront in all three Baltic countries. This can be seen as a criticism of the education system. Other pronounced concerns of German investors in the Baltics are linked to demand and relatively high labour costs.
However, the good news from the economic survey is that the absolute majority of the companies surveyed would still choose Estonia, Latvia and Lithuania as an investment location today.
This loyalty is also emphasised by the fact that the Baltic countries were rated as the most attractive location out of 20 potential investment destinations in the survey. In the sum of the survey results in all 16 countries analysed in the region, Estonia is now the most attractive investment destination for the third year in a row, ahead of the Czech Republic and Poland. Latvia has remained stable for 8 years in 6th place and Lithuania- in 7th place.
‘The results of our business survey can be summarised in the following sentence: Estonia remains No. 1 in the whole of Eastern and South-Eastern Europe, Lithuania surprises with rapid recovery after the crisis and Latvia must be careful not to be left behind,’ says Florian Schröder, Managing Director of the German-Baltic Chamber of Commerce.