In 2023, half of the foreign subsidiaries controlled by EU countries operated outside the union. But Latvia is noticeably different from the leaders in business exports — only 19.4% of Latvian companies' subsidiaries are located abroad.
The highest share of foreign subsidiaries outside the EU was observed among companies controlled by residents of Croatia (64.7%), Spain (60.1%), Portugal, and Sweden (both 57.9%). The lowest figures were recorded for Slovakia (6.6%), Greece (9.2%), and Latvia (19.4%), according to data published by Eurostat.
The employment situation is similar: on average, 61.6% of subsidiary employees in the EU work outside the union, while in Latvia, it is only 14%. The expenses on social guarantees for employees abroad among Latvian companies are also minimal, indicating that the main investments and jobs remain within Europe.
The net turnover of Latvian subsidiaries outside the EU amounted to only 13.1%. In comparison, 82.3% of subsidiary employees in Ireland work abroad, and the net turnover reaches 77.4%.
These data show that Latvia, unlike some other EU countries (Ireland, Spain, Portugal), mainly concentrates its investments and jobs within the union, making the country's economy less susceptible to the risks of international fluctuations.
