Analytics, Baltic Export, Baltic States – CIS, EU – Baltic States, Markets and Companies

About half or 51% of CEOs at the major Latvian, Lithuanian and Estonian companies believe that their companies' growth will be associated with the European Union markets. The CIS markets, on the other hand, have lost their appeal – only 6% of the major Baltic companies' CEOs consider exports there an opportunity.

The companies are planning to expand their export to EU and Nordic countries – 77% of respondents said they considered these markets to have strategic importance taking into account the reducing access to the Russian market. Some companies are considering the more exotic markets. According to the results of the poll, 10% of the largest Baltic companies are considering Asia, and 5% Africa.

SEB banka's board member Ints Krasts notes that the large companies are as focused as ever. "We work with our corporate clients on a daily basis, and we see that large companies cannot rely on domestic consumption alone, they also have to exist on export markets and seek solutions to challenges brought about by the geopolitical developments. We can see that businesses currently choose the more efficient solutions – increasing amounts of export to those countries where they have many contacts, where there are developed market regulations and predictable legal environment," said Krasts.

The bank emphasizes that companies' export strategies should not stop in the neighbor countries. Even though export destinations further away require larger investments and take more time, they can expand companies' horizons. Several leading Latvian companies in their market segments have already stepped out of their comfort zone by, for instance, launching cooperation with China.

The contradictory geopolitical and macroeconomic factors notwithstanding, companies should not hesitate with implementing their development plans. Businessmen told the bank that, at the moment, they focus on increasing efficiency, expansion into new markets, and innovation. The goal is to increase turnover.

The survey was carried out on March 26 during the Baltic Business Summit organized by SEB banka, which the bank annually hosts for its corporate clients. This year the event took place in Vilnius, it was attended by CEOs, leading management members, and owners of the 150 largest companies in the Baltic countries.

SEB banka posted EUR 122.6 million in turnover and EUR 23.7 million in profit last year.