That dollar amount results from a 56.5% increase compared to $14.4 billion five years earlier for 2019.
From 2022 to 2023, the total value of Latvian exported goods flatlined via a 0.5% gain starting from $22.5 billion.
Based on the average exchange rate for 2023, Latvia uses the euro which depreciated by -3.5% against the US dollar since 2019 but appreciated by 2.6% from 2022 to 2023. The weaker European Union currency versus 2019 made Latvia’s exports paid for in stronger US dollars relatively less expensive for international buyers.
Latvia’s Best International Trade Customers
The latest available country-specific data shows that 72.3% of products exported from Latvia was bought by importers in: Lithuania (16.7% of the Latvian total), Estonia (10.6%), Russia (10.2%), Germany (6.4%), Sweden (5.4%), United Kingdom (4.5%), Poland (3.8%), Denmark (3.8%), Finland (3.3%), Netherlands (3%), United States of America (2.4%) and France (2.3%).
From a continental perspective, 84.7% of Latvia’s exports by value was delivered to other European countries while 8.9% was sold to importers in Asia. Latvia shipped another 3% worth of goods to Africa.
Latvia joined the European Union on May 1, 2004. Fellow EU member states accounted for 64.6% of total international spending on Latvian exports.
Smaller percentages went to buyers in North America (2.8%), Latin America (0.4%) excluding Mexico but including the Caribbean, then Oceania (0.2%) led by Australia and New Zealand.
Given Latvia’s population of 1.9 million people, its total $22.6 billion in 2023 exports translates to roughly $12,100 for every resident in the north European nation. That per-capita dollar amount exceeds the average $11,900 for one year earlier for 2022.
Latvia’s Top 10 Exports
The following export product groups represent the highest dollar value in Latvian global shipments during 2023 at the 2-digit Harmonized Tariff System (HTS) code level. Also shown is the percentage share each export category represents in terms of overall exports from Latvia.
- Wood: US$3.1 billion (13.9% of total exports)
- Electrical machinery, equipment: $2.3 billion (10.1%)
- Mineral fuels including oil: $1.6 billion (7%)
- Machinery including computers: $1.4 billion (6.3%)
- Beverages, spirits, vinegar: $1.3 billion (5.9%)
- Vehicles: $1.1 billion (5%)
- Cereals: $788 million (3.5%)
- Pharmaceuticals: $754.2 million (3.3%)
- Articles of iron or steel: $683.8 million (3%)
- Plastics, plastic articles: $542.6 million (2.4%)
By value, Latvia’s top 10 exports was about three-fifths (60.5%) of the overall value of its global shipments.
Beverages, spirits and vinegar represents the fastest grower among the top 10 export categories, up by 94.8% from 2022 to 2023.
In second place for improving export sales was vehicles propelled by a 22.7% upturn.
Latvia’s shipments of machinery including computers posted the third-fastest gain in value up by 20.3%.
The leading decliner among Latvia’s top 10 export categories was mineral fuels including oil, pulled down by a -42.8% year-over-year drop.
The product categories listed above are at the 2-digit Harmonized Tariff System (HTS) code level.
Drilling down to the more detailed 4-digit HTS codes, Latvia’s most valuable export products are phone devices including smartphones (3.6% of the Latvian total), sawn wood (3.4%), alcoholic beverages (3.1%), fuel wood and sawdust (3%), wheat (2.8%), medication mixes in dosage (2.7%), petroleum gases (2.5%), wine (1.8%), cars (also 1.8%), then laminated wood including plywood (1.7%).
Collectively, those 10 products at more detailed level represent over one-quarter (26.7%) of all Latvian export sales.
Products Generating Trade Surpluses for Latvia
The following types of Latvian product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports reflect the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Wood: US$2.5 billion (Down by -14.9% since 2022)
- Cereals: $441.8 million (Down by -40.7%)
- Furniture, bedding, lighting, signs, prefabricated buildings: $171.7 million (Down by -20.7%)
- Dairy, eggs, honey: $150 million (Down by -31%)
- Books, newspapers, pictures: $131.6 million (Down by -20.2%)
- Articles of iron or steel: $101.5 million (Up by 9.3%)
- Oil seeds: $89 million (Down by -39.1%)
- Live animals: $85.7 million (Up by 43.4%)
- Meat/seafood preparations: $64.2 million (Up by 8.5%)
- Glass: $52.8 million (Up by 10.8%)
Latvia has highly positive net exports in the international trade of lumber. In turn, these cashflows indicate Latvia’s strong competitive advantages under the wood product category.
Products Causing Trade Deficits for Latvia
Latvia recorded an overall trade deficit of -US$4.6 billion during 2023, declining by -15.5% from the -$5.4 billion in red ink one year earlier during 2022.
Below are exports from Latvia that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Latvia’s goods trail Latvian importer spending on foreign products.
- Mineral fuels including oil: -US$1.3 billion (Down by -57.4% since 2022)
- Vehicles: -$1.2 billion (Up by 26.5%)
- Machinery including computers: -$1.1 billion (Up by 3.7%)
- Aircraft, spacecraft: -$762.9 million (Up by 1.3%)
- Electrical machinery, equipment: -$468 million (Down by -22.1%)
- Plastics, plastic articles: -$405.7 million (Down by -15.2%)
- Pharmaceuticals: -$311 million (Up by 21.1%)
- Paper, paper items: -$235.4 million (Down by -9.5%)
- Iron, steel: -$228.5 million (Down by -30.3%)
- Fertilizers: -$197.4 million (Down by -38.5%)
Latvia has highly negative net exports and therefore deep international trade deficits under the mineral fuels-related products category–particularly for refined petroleum oils, petroleum gases then petroleum coke and other petroleum residues
These cashflow deficiencies clearly indicate Latvia’s competitive disadvantages in the international energy market, but also represent key opportunities for Latvia to improve its position in the global economy through focused innovations.s
Latvian Export Companies
Given that Latvia is a small emerging economy, it should come as no surprise that not one Latvian corporation appears on the Forbes Global 2000 list.
Wikipedia does outline some Latvian export companies. Selected examples are shown below.
- Estonia Piano Factory (pianos)
- Liviko (vodka, other alcoholic beverages)
- Narva Oil Plant (shale oil)
- Rakvere Lihakombinaat (meat products)
- Rexer Ltd (automobiles)
- Saku Brewery (beer, cider, soft drinks, water)
- Tartu Mill AS (grains)
- Tondi Elektroonika (hearing aids)
In macroeconomic terms, Latvia’s total exported goods represent 29.5% of its overall Gross Domestic Product for 2023 ($76.55 billion valued in Purchasing Power Parity US dollars). That 29.5% for exports to overall GDP in PPP for 2023 compares to 30.9% for 2022, These percentages suggest a decreasing reliance on products sold on international markets for Latvia’s total economic performance, albeit based on a short timeframe.
Please note that those metrics include re-exporting activity.
Another key indicator of a country’s economic performance is its unemployment rate. Latvia’s unemployment rate averaged 6.665% in 2023, down from an average 6.851% one year earlier according to International Monetary Fund statistics.
Latvia’s capital city is Riga.
See also Latvia’s Top 10 Imports, Russia’s Top 10 Exports, Russia’s Top 10 Imports, Russia Top Trading Partners, Top Russian Trade Balances and Russia’s Top 10 Major Export Companies
Research Sources:
Central Intelligence Agency, The World Factbook Europe: Latvia. Accessed on April 29, 2024
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on April 29, 2024
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average). Accessed on April 29, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on April 29, 2024
International Trade Centre, Trade Map. Accessed on April 29, 2024
Investopedia, Net Exports Definition. Accessed on April 29, 2024
Wikipedia, Latvia. Accessed on April 29, 2024
Wikipedia, List of Companies of Latvia. Accessed on April 29, 2024
Wikipedia, Purchasing power parity. Accessed on April 29, 2024