Translated using ChatGPT service.
According to data from the Central Statistical Bureau, in December 2024, the value of goods exports at current prices declined by 4.5% year-on-year, while imports fell more moderately – by 2.5%. As a result, the trade balance for December stood at -11.6% compared to the previous year.
Exports of cereals, electrical equipment, and machinery saw the sharpest decline, along with beverages, vegetables, and animal feed. However, exports of wood and wood products, land transport vehicles, and various chemical and pharmaceutical products increased.
Exports to the EU Increased Slightly, While Exports to CIS Countries Declined Sharply
Exports to Latvia’s primary market – the EU – grew by 0.7% year-on-year in December. The fastest growth was recorded in exports to:
- Lithuania (transport vehicles),
- The Netherlands (mixed chemical products),
- Finland (mineral products).
However, exports declined to:
- Estonia (mineral products),
- Spain and Portugal (both due to lower grain exports).
At the same time, exports to CIS countries plummeted by 23.7%, with a significant drop in exports to:
- Russia (beverages, pharmaceuticals),
- Belarus (second-hand clothing, transport vehicles).
Notably, beverages still accounted for 40% of total exports to Russia, along with pharmaceuticals, footwear, clothing, accessories, perfumes, and other non-sanctioned goods.
Exports to Other Countries Fell by 11.9%
In the non-EU, non-CIS market, exports fell sharply to:
- Ukraine (unspecified goods),
- South Africa (grains),
- USA (electrical equipment, machinery),
- Cameroon and Nigeria (both due to lower grain exports).
Conversely, exports increased to Tunisia, Morocco, and Senegal, all driven by higher grain exports.
Imports Declined, Mainly Due to Lower Rail Transport and Aircraft Imports
On the import side, the biggest contributors to the decline were:
- Rail transport, aircraft, and aircraft parts,
- Electrical equipment, beverages, and optical equipment (moderate decline).
However, imports of mineral products and land transport vehicles increased.
Full-Year Trade Performance and 2025 Outlook
In 2024, the total value of goods exports at current prices was 1.9% lower than the previous year, while imports fell by 7.4%.
Throughout the year, exports of electrical equipment, machinery, and furniture declined, while exports of wood and wood products, as well as food industry products, increased.
Looking ahead to 2025, exports are expected to return to positive growth, although monthly fluctuations will persist due to ongoing geopolitical uncertainty. In this context, it is crucial to continue exploring new supply chains and market opportunities.
Prepared by:
Edmunds Gergelevičs
Senior Economist, Analytical Service
Ministry of Economics