That dollar amount results from a 49.2% increase compared to $15.1 billion for 2018.
From 2021 to 2022, the total value of Latvian exported goods accelerated by 15.5% from $19.5 billion.
Based on the average exchange rate for 2022, Latvia uses the euro which depreciated by -12.1% against the US dollar since 2018 and diluted by -12.3% from 2021 to 2022. The weaker European Union currency 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 74.1% of products exported from Latvia were bought by importers in: Lithuania (15.3% of the global total), Russia (13%), Estonia (11.3%), Germany (6.8%), United Kingdom (5.4%), Sweden (5.3%), Denmark (4.3%), Poland (3.5%), Netherlands (2.9%), Finland (2.5%), Norway (1.9%) and France (1.8%).
From a continental perspective, 86.5% of Latvia’s exports by value were delivered to fellow European countries while 7.2% were sold to importers in Asia. Latvia shipped another 3.6% worth of goods to Africa. Smaller percentages went to North America (1.9%), Latin America excluding Mexico but including the Caribbean (0.5%) then Oceania led by Australia and New Zealand (0.2%).
Given Latvia’s population of 1.9 million people, its total $22.5 billion in 2022 exports translates to roughly $11,900 for every resident in the north European nation. That per-capita dollar amount exceeds the average $11,000 for one year earlier in 2021.
Latvia’s Top 10 Exports
The following export product groups represent the highest dollar value in Latvian global shipments during 2022 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$3.9 billion (17.1% of total exports)
- Mineral fuels including oil: $2.8 billion (12.5%)
- Electrical machinery, equipment: $2 billion (9%)
- Machinery including computers: $1.2 billion (5.2%)
- Cereals: $1 billion (4.6%)
- Vehicles: $911.7 million (4.1%)
- Articles of iron or steel: $712.8 million (3.2%)
- Beverages, spirits, vinegar: $680.1 million (3%)
- Pharmaceuticals: $674.2 million (3%)
- Furniture, bedding, lighting , signs, prefab buildings: $559.5 million (2.5%)
By value, Latvia’s top 10 exports approach two-thirds (64.3%) of the overall value of its global shipments.
Mineral fuels including oil was the fastest grower among the top 10 export categories, up by 144.6% from 2021 to 2022. Petroleum gases and refined petroleum oils were the major drivers of that percentage increase.
In second place for improving export sales was cereals via a 44.9% advance led by Latvian international sales of wheat.
Latvia’s shipments of vehicles posted the third-fastest gain in value, up by 9.2%.
The leading decliner among Latvia’s top 10 export categories was the furniture, bedding, lighting, signs and prefabricated buildings product category, thanks to a -1.9% 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 petroleum gases (5.7% of Latvian global total), sawn wood (5.6%), wheat (4.2%), phone devices including smartphones (3.6%), electrical energy (3.2%), fuel wood and sawdust (3.1%), medication mixes in dosage (2.6%), processed petroleum oils (2%), rough wood (1.7%), then laminated wood including plywood (1.6%).
Collectively, those 10 products at more detailed level represent a third (33.3%) 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$2.9 billion (Up by 11.1% since 2021)
- Cereals: $742.4 million (Up by 50.6%)
- Dairy, eggs, honey: $217.2 million (Up by 54.9%)
- Furniture, bedding, lighting, signs, prefabricated buildings: $213.3 million (Down by -0.6%)
- Books, newspapers, pictures: $165 million (Up by 10.8%)
- Oil seeds: $155.9 million (Up by 6.4%)
- Articles of iron or steel: $90.7 million (Up by 41.8%)
- Live animals: $60.1 million (Up by 64.3%)
- Meat/seafood preparations: $59.5 million (Down by -0.4%)
- Stone, plaster, cement, asbestos: $48.9 million (Down by -12%)
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$5.4 billion during 2022, expanding by 50.1% from the -$3.6 billion in red ink one year earlier during 2021.
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$2.9 billion (Up by 193% since 2021)
- Machinery including computers: -$1 billion (Down by -2.1%)
- Vehicles: -$967.5 million (Up by 24.2%)
- Aircraft, spacecraft: -$753 million (Down by -2.2%)
- Electrical machinery, equipment: -$601.2 million (Up by 33.7%)
- Plastics, plastic articles: -$482.3 million (Up by 5%)
- Iron, steel: -$330.7 million (Up by 61.8%)
- Fertilizers: -$312.4 million (Up by 40.5%)
- Paper, paper items: -$262.2 million (Up by 23%)
- Pharmaceuticals: -$260.6 million (Up by 0.7%)
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 30.9% of its overall Gross Domestic Product for 2022 ($72.8 billion valued in Purchasing Power Parity US dollars). That 30.9% for exports to overall GDP in PPP for 2022 compares to 27.6% for 2021, These percentages suggest an increasing 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 6.947% in 2022, down from an average 7.557% one year earlier according to statistics from the International Monetary Fund.
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 June 8, 2023
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on June 8, 2023
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average). Accessed on June 8, 2023
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on June 8, 2023
International Trade Centre, Trade Map. Accessed on June 8, 2023
Investopedia, Net Exports Definition. Accessed on June 8, 2023
Wikipedia, Latvia. Accessed on June 8, 2023
Wikipedia, List of Companies of Latvia. Accessed on June 8, 2023
Wikipedia, Purchasing power parity. Accessed on June 8, 2023
