Do Latvians know how to be proud of themselves? / Article

Latvia is, in fact, a digitally advanced country with a strong IT industry capable of creating modern solutions and innovations. Western European countries, including Germany, view Latvia with respect – but do we ourselves realise how much we have to be proud of?

The sector includes more than 7,000 companies employing over 43,000 people. According to the Latvian Information and Communication Technology Association, the IT sector contributes 6.7% to GDP, with a total turnover of 5.6 billion euros. Last year, exports of IT products reached 1.6 billion euros, while IT service exports amounted to 1.36 billion euros. In the World Digital Competitiveness Ranking, Latvia ranks 31st this year – a notable improvement from 40th place in 2023 and 38th before that (out of 69 countries). But rather than focusing only on the ranking position, let us take a closer look at what this study reveals about Latvia.

High national cyber security capacity

In the category “Communications technology”, Latvia ranks 10th globally, demonstrating fast and stable internet, strong digital infrastructure and a favourable environment for IT companies and technology exports – all essential foundations for sector growth. Latvia also performs very well in other technological infrastructure indicators, such as high-tech exports, where we rank 24th. Our e-government development level is high (26th place), and the state actively collaborates with the IT sector on digitalisation projects (29th place in public–private partnerships), creating a solid basis for introducing AI solutions in the public sector.

Latvia’s cyber security capacity ranks 8th globally, clearly indicating that public institutions are well prepared for cyber threats – which in turn strengthens trust among international partners and boosts IT export potential. And these are only some of the accomplishments worth recognising.

Working closely with business leaders and companies in Germany, I can say with confidence that Germany holds Latvia’s IT sector in high regard, especially in public-sector digitalisation, where Latvia has proven itself repeatedly. We have created multiple best-practice examples in digital transformation – cases from which much larger economies can learn. Latvian IT companies regularly receive international recognition and attract investor interest, demonstrating far greater competitiveness than we sometimes give ourselves credit for.

World-class talent

Another major advantage is our talent. Their competitiveness on the international stage is no secret, and the competition for skilled professionals has long transcended national borders. The knowledge and education of our specialists, the experience of local IT companies, and the competitive pricing compared to Western Europe all contribute to the strong demand for Latvian IT services and products. Latvia’s IT sector offers an excellent price–quality ratio, which is widely recognised and valued in export markets.

As a society, we often highlight shortcomings and problems – in every field, including IT – analysing system flaws or project failures. On one hand, this is healthy, because learning from mistakes is crucial for improving future outcomes. But on the other hand, it is just as important to recognise what has already been achieved and to learn how to take pride in it.

Yes, there is always room for improvement, but Latvia today already has a strong IT ecosystem, high-quality infrastructure, internationally competitive specialists and solutions that are respected and in demand far beyond our borders.

That is why we must not only notice the challenges – we must also acknowledge our achievements. Because only when we appreciate what we have accomplished can we continue building an even more ambitious and digitally stronger future for Latvia.

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