Latvia's foreign trade gap widened in October

The export value of goods was 15.7 % higher, but the import value of goods was 27.6 % higher. In October Latvia exported goods worth EUR 1.82 billion, but imported goods worth EUR 2.38 billion.

Compared to October 2021, foreign trade balance has worsened as exports in total foreign trade amount decreased from 45.7 % to 43.4 %.

During the ten months of this year foreign trade turnover of Latvia at current prices reached EUR 39.19 billion – EUR 9.78 billion or 33.3 % more than in the Covid-hit corresponding period of 2021. The exports value constituted EUR 17.34 billion (a growth of EUR 4.08 billion or 30.7 %), whereas the imports value comprised EUR 21.85 billion (a rise of EUR 5.7 billion or 35.3 %).

Calendar and seasonally adjusted data show that, compared to October 2021, in October 2022 the exports value at current prices went up by 16.4 %, but the imports value – by 25.5 %, whereas, compared to the previous month, the exports value went down by 11 % ,but the imports value – went up by 1.1 %.

The main exports partners in October were Lithuania (17.5 % of total exports), Estonia (11.5 %), Germany (7.2 %) and Sweden (6.7 %), whereas the main imports partners were Lithuania (29.2 % of total imports), Estonia (9.9 %), Germany (8.9 %) and Poland (8.7 %).

In October 2022, compared to September, exports value to Ukraine increased by EUR 6 million or 20.1 %. It was mainly affected by the rise of EUR 2.5 million and EUR 2.2 million in exports of products of the chemical and allied industries (mainly of medicines) and prepared foodstuffs, respectively. Exports to Russian Federation went up by EUR 16.2 million or 15.4 %, but to Belarus – by EUR 842.5 thousand or 5 %. Rise in exports to Russian Federation was mainly affected by the growth in exports of prepared foodstuffs by EUR 15.6 million or 36.4 %, while to Belarus – of optical instruments and apparatus by EUR 1.2 million or 37.2 %.

In October 2022, compared to the previous month, imports value from Ukraine increased by EUR 7.6 million or 29.3 %. It was affected by the rise of EUR 2.8 million or 42.1 % in imports of products of the chemical and allied industries (mainly of diagnostic or laboratory reagents). Imports from the Russian Federation reduced by EUR 12.9 million or 8.9 %, which was mainly affected by drop of vegetable products by EUR 7.4 million or 52.6 %. Imports from Belarus decreased by EUR 2.6 million or 16.7 %, which was mainly affected by drop in imports of animal or vegetable fats and oils by EUR 3.7 million or 51.5 %.

Main commodities in exports of Latvia in October 2022 (at current prices)

Commenting on the figures, the Finance Ministry said: " It can be concluded that the growth in exported goods is slowing down. Although compared to October of last year, the value of exports of goods in actual prices increased by 15.7%, which is a high increase overall, it is half that in previous months."

"Analyzing the dynamics of export of goods in real terms, or excluding the effect of prices, a more negative export picture is formed, because the price factor plays a significant role in the increase of export of goods this year... It is likely that the increase in the export price index in October this year will be lower than in September, so the increase in goods exports in real terms could be close to zero or with a slight increase."