Latvia Export Data

Latvia's Import/Export Overview and Domestic Market Update

Imports & Exports

• Top Trade Partners: Latvia's main trade partners include Germany, Lithuania, Estonia, Poland, and Russia, reflecting its strategic location and economic ties within Europe.

• Top 5 Imports: Machinery, vehicles, pharmaceutical products, mineral fuels, and electrical equipment. These account for a significant portion of Latvia's total imports, highlighting its industrial needs and reliance on energy supplies.

• Top 5 Exports: Wood, paper, machinery, furniture, and food products. These exports represent a substantial part of Latvia's total exports, emphasizing its competitive sectors in timber processing and agriculture.

• Trade Balance: Latvia often experiences a trade deficit, where imports exceed exports. However, strategic policies and market diversification efforts are gradually improving this balance.

• Trade Policy: Latvia, as a member of the European Union, adheres to EU trade policies, which facilitate free trade within the bloc and negotiate agreements with non-EU countries to enhance its global trade relations.

Domestic Market

• Consumer Spending: Consumer expenditure in Latvia is robust, driven by increasing wages and employment rates. However, rising costs of living and inflation pose challenges to maintaining this trend.

• Interest Rates & Inflation: Inflation in Latvia has been on the rise, influenced by global energy prices and supply chain disruptions. The central bank's interest rate adjustments aim to control inflation and stabilize the economy.

• Supply Chain Dynamics: Supply chain disruptions, particularly in the global context, have impacted Latvia's industries, leading to increased import costs and production delays. Efforts are underway to strengthen local supply chains and diversify sourcing.

• Industry Performance: Latvia's manufacturing, forestry, and agriculture sectors are performing well, contributing significantly to the economy. The service sector, especially IT and tourism, is also growing, supported by investments in infrastructure and technology.

Overall Outlook

Despite facing challenges such as inflation and supply chain disruptions, Latvia's economy demonstrates resilience through its diversified trade relations and robust domestic market. The government's focus on innovation, infrastructure development, and sustainable growth strategies bodes well for its long-term economic prospects.