Latvia‘s November Trade Balance Shrinks as Exports and Imports Decline
According to data from the Central Statistics Bureau, Latvia’s trade balance in the year’s eleventh month suffered a significant drop, with export and import values both declining. Export values decreased by 3% year-on-year, while imports saw a steeper decline of 12.5%. Consequently, the trade balance shrank to -3.8% in November.
Export Declines in Key Sectors, Imports of Certain Goods Increase
November saw a sharp decline in export values for electrotechnical products and equipment, oilseeds, and mechanical equipment and apparatus. Conversely, exports of sawn wood and wood products, grains, and land transport equipment witnessed an increase.
In terms of destination markets, exports to the European Union countries (Latvia’s largest trading partner) grew by 2.3%. Notable increases were observed in exports to Netherlands (miscellaneous chemical products), Denmark (wood), Spain (grains), and Lithuania (transport equipment). However, exports to Germany (oilseed rape), France (aircraft, spacecraft, and parts thereof), and Estonia (electrotechnical products and equipment) fell.
Exports to the Newly Independent States (NIS) countries dropped significantly by 24%, led by decreases in exports to Russia (beverages) and Belarus (woven apparel, pharmaceutical products). Notably, beverages accounted for 50% of all export value to Russia in November. Other exports to Russia included machinery, apparel, pharmaceutical products, and other goods not subject to sanctions.
Exports to other countries also decreased by 8.7%, with increases to Angola (grains), Tunisia (mineral products), and India (vegetables), but decreases to Ukraine (unclassified goods), Canada (oilseed rape), and Madagascar (grains).
Imports Fall Due to Reduced Purchases of Aircraft and Related Products
November’s import decline was heavily influenced by a decrease in purchases of aircraft and parts thereof. Additionally, imports of mineral products, electrotechnical products and equipment, machinery, and apparatus all decreased. Conversely, imports of sawn wood and wood products increased.
2024 Performance and Outlook
Overall, export values in 2024 were 2.1% lower than in the previous year, while imports decreased by 7.1%. Although a positive export growth is expected in the final month of 2024, the sector continues to be impacted by limited external demand and geopolitical uncertainties. Focusing on finding new market opportunities and expanding non-traditional export markets will be crucial in this scenario.
