Latvia’s digital trajectory combines above-EU ICT contribution and strong public digital performance with gaps in SME digitalization and AI adoption, offering replicable strengths alongside structural constraints for peer economies.
- Latvia’s ICT sector share of GDP rose by 67.5% from 2011 to reach 6.7% in 2023, above the EU average of 5.2% and broadly in line with Estonia’s ~6–7%.
- The country recorded 1.7 million internet users in 2025, up from 1.6 million in 2020, with internet penetration reaching 93.9% (EU average: 92.7%), with a slight decline in users (-0.8% in 2025).
- 5G coverage expanded rapidly to 71.1% in 2024, but remains below the EU average of 94.3%, despite faster growth of 33.9% versus 6% in the EU.
- The startup ecosystem expanded rapidly between 2021 and 2024, marked by its first unicorn, record foreign investment inflows, and top global ranking in startup friendliness.
- However, basic digital intensity of SMEs is still below the EU average of 72.9%, with SMEs in Latvia reaching 59.2% basic digital intensity in 2024.
- In 2025, 12.2% of Latvian enterprises adopted AI, but still below the EU average of 20.0%, Estonia’s 23.4%, and Lithuania’s 21.3%, despite a national AI strategy.
- Digital trade expanded significantly, with ICT services exports reaching 16.9% of services trade and digitally deliverable services accounting for 44.9% in 2024.
- Latvia ranks among leading EU digital performers, placing 6th in DESI digital services and improving to 31st globally in digital competitiveness, supported by strong e-government adoption rates.
- In 2024 Latvia adopted the National Cyber Security Law, aligning national cybersecurity governance with EU-wide requirements.
- Latvia’s digital skills show progress in ICT employment but remain below EU averages, constrained by lower literacy, regional gaps, and weaker enterprise upskilling.
Join us as we explore Latvia’s evolving digital landscape, where opportunities for growth and innovation abound.
