On Tuesday, March 4th, at the Rīga Stradiņš University (RSU) Medical Education Technology Centre, the Latvian Institute for Strategy and Economic Solutions (LaSER) presented the results of a study on the impact of the export of higher education and its added value to the national economy, titled “Foreign Students in Latvia: A Source of Growth?”
The study analyzed the impact of foreign students on Latvia's education sector, labor market, and economic development. It examined the responses of 1,809 participants, providing a detailed overview of the international student profile, their perception of studying in Latvia, and the opportunities they create for Latvia's economy and education sector. To calculate the economic contribution, data was collected on student spending (tuition fees, housing, living expenses) as well as the contribution generated by foreign student visitors. To compare changes, data from a similar survey conducted in 2016 was used, which analyzed the same cost categories.
"Export of higher education services is an increasingly growing sector of Latvia's economy with high growth potential, as the international community's demand for affordable and quality higher education rises. The contribution of the higher education export sector to Latvia's economy is estimated at 385 million euros, or nearly one percent of GDP. However, although the number of foreign students in Latvia is increasing, only a small fraction of them wish to build their lives in Latvia after completing their education. The main reasons for this are low wages and limited opportunities to find jobs that allow for daily communication in English," explained Daunis Auers, Chairman of the Board of the "LaSER" think tank.
After the presentation of the study by Prof. Daunis Auers from the University of Latvia, possible scenarios for utilizing the export of higher education for the country's economic growth were discussed under the leadership of RSU Vice-Rector Tom Baumanis. The discussion involved Riga's Mayor Vilnis Ķirsis, economic expert Ģirts Rungainis, Parliamentary Secretary of the Ministry of Health Artjoms Uršuļskis, and think tank LaSER's Prof. Daunis Auers.
"In Latvia, only 15% of students are international, while at our university, more than 3,000 foreign students are currently studying, making up more than a quarter of all students. The contribution of RSU's international students to Latvia's economy reached 139 million euros last year, and it is projected to increase to one billion euros by 2030," emphasized RSU Rector Prof. Aigars Pētersons.
Operational data from the Latvian Ministry of Education and Science (IZM) shows that 11,600 international students have started their studies in Latvia for the 2024/2025 academic year. The largest number of foreign students is concentrated in two universities – Riga Technical University (RTU) and Rīga Stradiņš University (RSU), which have gained special popularity due to their international reputation and broad offering of programs in English.
The most prestigious universities in the world and Europe are international, with more than half of their students being from abroad. Only 3% of foreign students receive state scholarships for study funding in Latvia. The remaining 97% use personal funds, family support, or other external resources, thereby creating new financial flows into Latvia's economy. Data shows that only 5% of foreign graduates stay in Latvia after their studies.
As stated in the study, data on the export of higher education services is collected in national statistics on international service trade. Latvia stands out in this segment with significant achievements – in 2022, export volume reached 98 million euros, solidifying Latvia's position as the leader in the Baltic region. This growth is supported by a well-structured higher education system offering a wide range of programs in English.
The full study can be accessed here [LV].
