📊 Baltics Improve in IMD World Competitiveness Ranking 2025
Latvia moved to 38th place in the IMD World Competitiveness Ranking 2025, rising seven positions year on year. Economic Performance ranked 59th, Government Efficiency 29th, Business Efficiency 34th, and Infrastructure 33rd. The strongest gain was in Business Efficiency, which improved by 15 places. Inflation in Latvia stood at 1.4%, placing the country 13th globally for price stability.
Estonia climbed to 26th place, also up seven positions from 2024. Its indicators remained stable across Government Efficiency, Business Efficiency, and Infrastructure, each shifting by one position. IMD notes improvements in innovation capacity and digital infrastructure. Energy costs and investment regulation were highlighted as priority areas for 2025.
Lithuania reached 17th place, gaining 13 positions compared with 2024. All four IMD pillars ranked 14th globally: Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure. The improvement is linked to fiscal stability, business adaptability, and labour-market flexibility. IMD points to demographic pressures and defence spending as key structural factors.
Context:
All three Baltic states improved their positions in the 2025 IMD ranking, with Lithuania now leading the region. Estonia strengthened its position relative to EU peers through digital resilience, while Latvia recorded its best result since 2021. The ranking will inform regional discussions on competitiveness, investment conditions, and labour-market policy ahead of 2026 economic planning cycles.
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