After four years of undisputed leadership, Estonia remains a frontrunner in investment promotion, securing second place in Emerging Europe’s 2024 investment promotion agency (IPA) rankings.
Neighbouring Latvia has taken the first spot. “Countries like Estonia and Latvia are at the forefront of digital governance, setting global standards for e-governance and cybersecurity,” say the authors. Lithuania is third, meaning that once again, the three Baltic states take the top three positions.
The annual report, which evaluates 23 national IPAs across the emerging Europe region, has assessed that Estonia’s investment promotion agency, Invest Estonia, scored 77.5 out of 100 points.
Estonia excelled in the ‘Innovativeness and creativity’ category and performed strongly in the ‘Support and community building’ category, scoring 22.5 out of 25 points and ranking second. In ‘Online presence and ease of use’, Estonia again secured second place with 18 out of 20 points. Another highly important metric, “Response to current developments,” also put Estonia in second place, behind only Ukraine.
Invest Estonia’s website was pointed out for its up-to-date information spanning various sectors, fact sheets about the tax system, labour force, and other relevant statistics useful for foreign investors. And there’s more than raw data. The agency’s efforts in building community and providing support were also highlighted, with Estonia scoring among the highest in this category.
In terms of FDI performance, Estonia demonstrated both resilience and growth. The country attracted a near-record $5.13 billion in FDI in 2023, an increase from $1.65 billion in 2022. This data is collected by the IMF. What’s even more impressive is that it places Estonia fourth in total FDI inflows among the 23 countries evaluated, ahead of much bigger rivals.
When considering FDI per capita, Estonia’s performance is even more striking. The country leads the region with $3,806.1 per capita in 2023, eclipsing all competitors. The report also acknowledges Estonia’s broader economic appeal, citing its fair tax system, effective regulation, highly skilled talent pool, and attention to investment relationships. All that is converted into brand value: the Estonian national brand is the fastest-growing in the region, adding 76.9% in value since 2020. In absolute numbers, it’s valued at over $50B.
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