Although the situation in Latvia's business environment is often characterized as challenging, the number of insolvency cases among enterprises is not increasing; on the contrary, it is decreasing.
A study of insolvency statistics in Latvia conducted by Lursoft IT Ltd. and data collection provided by the state authority - the Insolvency Control Service - shows that the number of insolvency cases in 2025 is relatively low. The same trend is demonstrated by the latest research from the global risk management company Coface regarding insolvency cases in Central and Eastern European countries, including Latvia according to the Coface concept.
In 2025, compared to 2024, the number of insolvency cases in Latvia decreased by 7.4% - from 430 cases in 2024 to 398 cases in 2025. In Lithuania, the number of insolvency cases decreased even by 13%. At the same time, Estonia showed a different trend - there, the number of insolvency cases increased by 1.1%, according to the research conducted by Coface experts.
In all three Baltic countries, last year the most rapid growth of insolvency was recorded in the accommodation and food service sector, the study states. This trend indicates that not all businesses in this sector are able to adapt to the real situation shaped by both the financial caution of residents and the fierce competition within the industry, especially in the food sector, as well as rising labor costs.
In Latvia, the largest insolvency case last year was in the aviation sector concerning SmartLynx Airlines. This case vividly illustrates the risks in capital-intensive and particularly sensitive industries to fluctuations in the external economic environment, experts from Coface believe.
