Translated using ChatGPT service.
According to data from the Central Statistical Bureau, in July 2024, the value of goods exports at current prices increased by 6.5% year-on-year, while the value of imports increased by 9.3%. As a result, the trade balance slightly worsened year-on-year in July, reaching -14.8%.
In July, the year-on-year growth in the export value was fastest for mineral products, wood and wood products, beverages, iron and steel, as well as machinery and devices. On the other hand, the export of furniture, ornamental plants, vegetables, and land vehicles decreased.
Year-on-year, exports to Latvia’s main market—the EU countries—increased significantly by 11.6% in July. The export value grew faster to Lithuania (mineral products, machinery), Estonia (wood, vehicles), Poland (electrical devices, machinery), France (electrical devices, animal feed), and Germany (mineral products, cereals). Meanwhile, the export value decreased to Ireland (animal feed, oilseed).
Conversely, exports to CIS countries decreased by 3.3% in July. Exports to Kyrgyzstan (ornamental plants, machinery) and Uzbekistan (machinery) decreased. Exports to Russia (beverages) increased by 3.6%. A large portion of exports to Russia continues to be beverages, along with footwear, clothing and accessories, pharmaceuticals, and other goods not subject to sanctions.
Exports to other countries also decreased by 3.6% in July. In this group of countries, export values significantly decreased to Ukraine (unspecified goods), and moderately to Senegal and Côte d'Ivoire (grains to both), and Iceland (wood). However, exports increased to Nigeria (grains) and the United Kingdom (wood, organic chemical compounds).
In July, the growth in the value of imports was largely driven by an increase in the import value of aircraft and aircraft parts. More moderate increases were observed in imports of mineral products, railway transport, pharmaceutical products, and electrical devices and equipment. However, imports of machinery and land vehicles decreased.
Overall, in the first seven months of this year, the value of goods exports at current prices was 4% lower than the previous year, while the value of imports decreased by 7.9% over the same period.
It is expected that positive export growth will continue in the coming months, though it will remain constrained by external demand and geopolitical uncertainty. In this situation, it is important for businesses to continue seeking new supply opportunities and markets for their goods.