INSIGHT LATVIA 1 MIN READ

Latvia | Digitalization of Businesses

Published

Latvia’s business digital adoption remains moderate within the EU, with gradual SME digitalization progress, limited AI uptake, and stable e-commerce expansion.

  • Latvia’s SMEs reached 59.2% basic digital intensity in 2024, increasing 13.2% from 2022, remaining below the EU average of 72.9%. || Source: European Commission
    + With SMEs representing 99.8% of enterprises and 71.7% of value added, their lower digital intensity significantly affects overall national performance. || Source: EU SME Fact Sheet 2025
  • And in 2025, 12.2% of Latvian enterprises adopted AI, below the EU average of 20.0%, Estonia’s 23.4%, and Lithuania’s 21.3%, despite a national AI strategy. || Source: Eurostat
  • Meanwhile, Latvia’s e-commerce market generated about $805 million in 2025, growing within a 0–5% year-on-year range, with similar low single-digit expansion expected in 2026. || Source: ECDB
    + And in 2024, Latvia recorded about 700 thousand e-commerce users, with around 70% of residents shopping online, and slightly higher participation observed among women, particularly ages 25–34.