About the Baltics
If you live, visit, or do business with the Baltic states, the countries you have in mind are Estonia, Latvia and Lithuania – the three gems on the shores of the Baltic Sea.
Half of the land in the countries is covered by forests, with innumerable lakes and rivers. However, it is not only the natural environment that is inspirational. The countries are strategically located and serve as a natural intersection for the EU, Nordic, and CEE economies.
The region has 7 deep-water, ice-free commercial ports, 5 international airports, and an established railway network. The largest regional infrastructure project in a century – Rail Baltica, is poised to provide a high-speed train connection for passenger and cargo flows in a south-north direction, most of the way from Kaunas to Tallinn by 2026 and from Warsaw to Helsinki by 2030!
The Baltics welcome investors and occupiers alike in all the main business segments – office, retail, industrial, residential, and hotels – supported by consistently expanding industries in manufacturing, exports, and services, increasing tourism, as well as growing domestic consumption. Discover the region and take part in its rapidly developing economy!
- Area: 175,100 sq km
- Population: 6.1 million
- Native Languages: Estonian, Latvian and Lithuanian
- National currency: Euro
- Time zone: GMT +2
- International dialing codes: +372 (EE); +371 (LV); +370 (LT)
- Political system: Republic, parliamentary democracy
- Members of the EU, NATO, OECD, as well as WTO & UN
Business Services in the Baltics
Mobile communications and internet applications in the Baltics are among the most progressive in the world. The Baltic countries offer a cost-competitive, talented workforce that has already been recognized by a number of shared service and business process outsourcing units, as well as R&D centres which have been opening in the largest cities in the Baltics. As opposed to many other CEE hotspots, the cities have the potential to grow further, and there is still unsaturated potential to be discovered.
Potential of the region is acknowledged in the European Cities and Regions of the Future 2023 report. Nine cities within the Baltic States: all capital cities and three other Lithuanian & Latvian cities – Kaunas, Klaipeda, Panevezys & Ventspils, Jelgava, and Valmiera – are listed among the fDi’s Europe’s most potential investment destinations in 2023.
Estonia
Estonia boasts a profit-oriented and user-friendly business environment, attracting an impressive number of foreign investors and world-renowned international companies to the country, including Ericsson, ABB, Kuehne + Nagel, Stora Enso, Symantec, Stoneridge, Vopak EOS, Deutsche Post DHL, and many others.
An investment-friendly taxation system, transparent and functioning legislation, economic freedom, ease of doing business rating, per capita investments, and a low corruption index are just a few of the advantages of doing business in Estonia. Thanks to these characteristics, Estonia consistently ranks among the top 10 economically-free countries worldwide according (Economic Freedom Index, the Fraser Institute).
This compact country is also one of the biggest startup hubs in Europe, giving birth to companies such as Skype, Wise, and Bolt. As a result, Estonia boasts one of the highest cumulative sums of estimated values in the startup ecosystem in the CEE region, reaching 14.6 billion euros (Dealroom, 2023).
Situated between the northernmost of the three Baltic states, Estonia benefits from its proximity to its northern neighbors, which promotes a consistently high level of tourism throughout the year. Moreover, the country’s well-developed road network, regular ferry transport, airports, and timely train and bus connections make travel within Estonia and to neighboring states convenient.
|
No. |
City in Estonia |
City population 2023 |
Metro area population 2023 |
|
1. |
Tallinn |
438 341 |
609 515 |
|
2. |
Tartu |
96 430 |
153 912 |
|
3. |
Narva |
53 424 |
131 913 |
|
4. |
Parnu |
50 639 |
85 760 |
Latvia
Located in the center of the three Baltic countries, Riga is the largest and only Baltic metropolis with nearly 1 million inhabitants. Within a 3-hour drive, approximately 6 million people live around Riga, while a 12-hour drive can reach up to 20 million people. It has become a hub for prominent companies such as Accenture, Tieto, Circle K, Transcom, C.T.CO, VISMA, Evolution Gaming, Ubiquiti, BCG, Printful, Link Mobility Group, and many others.
The city holds significant potential for rapid development compared to other major metropolises in the CEE region, as well as the other two Baltic capitals. In 2022, Latvia launched 32 new foreign direct investment projects, matching the previous year’s figure and creating around 2,000 new jobs annually. Riga was awarded the “Dynamically Developing” CEE Business Services Award in 2021 and has emerged as a startup center, offering numerous opportunities for idea testing, business development, and networking activities.
One outstanding advantage of Riga is its international airport, which is the largest in the Baltics. In 2022, the airport served 5.4 million passengers, accounting for nearly half of the total passenger traffic in Baltic airports. The national airline, AirBaltic, provides approximately 100 direct flight connections to major international destinations.
|
No. |
City in Latvia |
City population 2023 |
Metro area population 2023 |
|
1. |
Riga |
626 100 |
993 600 |
|
2. |
Daugavpils |
82 000 |
251 500 |
|
3. |
Liepaja |
68 500 |
235 000 |
|
4. |
Jelgava |
55 400 |
226 300 |
Lithuania
Lithuania continues to maintain high competition in the fight for high-value-added projects. The Lithuanian capital – Vilnius, has proven itself to be one of the best destinations for shared service and outsourcing in the CEE region. This also reflects in the accomplished results.
As of 2023, service centres of global business leaders such as Barclays, Western Union, Nasdaq, Danske Bank, IBM, Booking.com and many others are already present and thriving in the Vilnius market. In addition, more well-known names were established in the capital city during 2022: private financial services group Alter Domus, professional business services and consulting company Accenture, and digital agency Unrvld. Moreover, businesses choosing Lithuania intend to scale their operations and create new workplaces for domestic talent.
Several factors attract foreign capital to Lithuania, including a highly skilled labor force, well-developed infrastructure, a lively atmosphere, and a good quality of life. The transportation networks, consisting of road and rail links, make travel between cities convenient, while three international airports provide easy access to other European destinations within a few hours.
Whether for business or leisure – Lithuania serves as an ideal destination.
|
No. |
City in Lithuania |
City population 2023 |
Metro area population 2023 |
|
1. |
Vilnius |
625 350 |
820 500 |
|
2. |
Kaunas |
319 790 |
562 800 |
|
3. |
Klaipeda |
172 292 |
320 000 |
|
4. |
Siauliai |
115 160 |
261 500 |
|
5. |
Panevezys |
91 233 |
211 000 |