Survey: Swedish-Linked Firms Rate Corruption's Impact Higher in Latvia Than in Lithuania and Estonia

Companies connected to Sweden see corruption as having a greater effect on business in Latvia than in Lithuania or Estonia. This is shown by the "Business Climate Survey 2026", conducted by the Swedish embassies in the Baltic states together with the Stockholm School of Economics in Riga (SSE Riga). The results, published on 14 November 2026, show how foreign-linked businesses assess the business environment across the three Baltic countries.

Corruption ratings

Firms rated corruption's impact on a scale of one to five, where one means corruption does not affect operations and five means it has a very significant effect. In Latvia the average is 2.3, up from 2.1 in the 2021 survey. In Lithuania it is 1.7, and in Estonia 1.4.

The authors say the gap between Latvia and the other Baltic states remains statistically significant even after accounting for employee numbers, ties to Sweden, regulation, licensing and permits, the tax system and business culture. The differences therefore cannot be explained by the characteristics of the surveyed companies alone.

In Latvia, the lowest impact was reported by companies majority-owned by Swedish capital, at 1.9. Minority-stake companies gave 2.3, subsidiaries and branches 2.6, and firms with other types of Swedish links three points. In open-ended answers, companies urged stronger action against the shadow economy and corruption, and more consistent, fairer application of legislation.

Administrative environment

At the same time, assessments of Latvia's administrative environment have improved since 2021. The suitability of licence, permit and approval procedures for business needs scored 3.7, compared with 2.6 previously. The tax system and the regulatory framework each received 3.5. Companies named more predictable and stable regulation as a key improvement, and called for less bureaucracy, simpler administrative requirements, faster public administration and continued digitalisation of public services.

Methodology

The survey ran from April to June 2026 and analysed 214 company responses: 73 from Latvia, 85 from Estonia and 56 from Lithuania. Participants included firms with Swedish capital, Swedish management and other Sweden-linked companies; Swedish chambers of commerce also helped organise it. In 2021, 39 companies took part in Latvia. The respondent groups differ and some questions use different scales, so the direction of change is more reliable than its size.