Latvia’s Foreign Trade Turnover: November 2025 Data & Trends

Latvia’s Trade Landscape: Navigating Shifts and Future Trends

Recent data from the Central Statistical Bureau of Latvia reveals a complex picture of the nation’s trade performance in November 2024. While overall trade turnover reached €3.43 billion – a slight increase of 1.1% year-on-year – a closer look reveals diverging trends. Export values dipped by 5.6%, while imports surged by 7.4%. This shift signals evolving dynamics in Latvia’s economic relationships and warrants a deeper examination of potential future trends.

The Divergence: Why are Imports Rising Faster than Exports?

The increase in imports, across nearly all major commodity groups, suggests strengthening domestic demand and investment. The 9.3% jump in imports compared to November 2023, even when seasonally adjusted, points to a robust internal economy. Specifically, the significant rise in imports of machinery, mechanical devices, and electrical equipment (up 14.9%) indicates investment in modernization and technological upgrades. This is a positive sign for long-term productivity growth.

The decline in exports, however, is more nuanced. While overall export value decreased, certain sectors experienced growth, notably mineral products (up 25.7%). The decrease in agricultural product exports (down 19.9%) could be linked to fluctuating global commodity prices and potentially, the impact of geopolitical factors on supply chains. The drop in exports to the US (-30.7%) is particularly noteworthy, driven by a decline in optical instruments and clocks, highlighting vulnerability to specific market demands.

Geopolitical Influences and Trade Partner Realignment

Latvia’s trade relationships are increasingly shaped by geopolitical realities. The substantial decrease in trade with Russia (-33.3% in exports, -81.1% in imports) is a direct consequence of sanctions and shifting political alignments. While this presents challenges, it also encourages diversification of trade partners.

The data shows a growing reliance on EU member states. The EU’s share of Latvia’s total export value increased by 9.3 percentage points, and import value by 0.1 percentage points. This trend is likely to continue as Latvia prioritizes trade within the stable and integrated EU market. However, maintaining competitiveness within the EU requires ongoing investment in innovation and efficiency.

Did you know? Latvia’s trade balance was positive with 110 partner countries in November 2024, demonstrating a broad base of trading relationships.

Future Trends: What to Watch in 2025 and Beyond

Several key trends are likely to shape Latvia’s trade landscape in the coming years:

• Green Transition & Sustainable Trade: Demand for environmentally friendly products and technologies will increase. Latvia, with its focus on renewable energy and sustainable forestry, is well-positioned to capitalize on this trend. Expect to see growth in exports of bioenergy products and green technologies.
• Digitalization of Trade: E-commerce and digital trade platforms will become increasingly important. Latvia needs to invest in digital infrastructure and streamline customs procedures to facilitate seamless cross-border trade.
• Supply Chain Resilience: The disruptions caused by recent global events have highlighted the need for resilient supply chains. Latvia can strengthen its position by diversifying its sourcing and building strategic partnerships.
• Nearshoring & Regionalization: Companies are increasingly looking to nearshore production to reduce risks and improve responsiveness. Latvia’s proximity to major European markets makes it an attractive location for nearshoring activities.
• Growth in Services Exports: While the data focuses on goods, Latvia’s services sector – particularly IT, logistics, and financial services – is a growing contributor to the economy. Promoting these services internationally will be crucial.

Sector Spotlight: Opportunities and Challenges

Food Products: Despite the recent export decline, Latvia’s food industry has significant potential. Focusing on high-value-added products, organic farming, and niche markets can drive export growth. Addressing supply chain vulnerabilities and ensuring food security will be critical.

Wood Products: Latvia’s forestry sector remains a key contributor to exports. However, sustainable forest management practices and value-added processing are essential to maintain competitiveness and address environmental concerns. The recent decline in wood product exports suggests a need for innovation and diversification.

Machinery & Equipment: The rising demand for machinery and equipment, both domestically and internationally, presents opportunities for Latvian manufacturers. Investing in research and development, automation, and skilled labor will be crucial to capitalize on this trend.

Pro Tip: Latvian businesses should actively explore opportunities to participate in EU funding programs that support innovation, digitalization, and sustainable trade practices.

FAQ

• What is Latvia’s main export partner? Lithuania currently accounts for the largest share of Latvia’s exports (20.6%).
• What caused the decline in exports to the US? A decrease in exports of optical instruments, clocks, and musical instruments was the primary driver.
• Is Latvia’s trade balance positive? Yes, Latvia had a positive trade balance with 110 partner countries in November 2024.
• What is the impact of the war in Ukraine on Latvian trade? Exports to Ukraine have significantly decreased, while imports have also fallen.

The Latvian trade landscape is undergoing a period of transformation. By embracing innovation, diversifying trade partners, and focusing on sustainable practices, Latvia can navigate these challenges and unlock new opportunities for economic growth.