Latvia

📊 Overview

Latvia stands as the world's #78 largest exporter and #78 largest importer, demonstrating emerging market dynamics.

The trade profile reveals a deficit of 4.42 billion, reflecting import dependencies for growth.

The country maintains active trading relationships with 20 major partners, creating a highly diversified trade network.

Monthly trade flows average $3.85B, generating continuous economic activity across logistics, finance, and trade services.

🚢 Export Markets

Export concentration shows Lithuania as the dominant market at 17.9%. The top three markets control 32.1% of exports.

Regional patterns reveal globally balanced access. Secondary markets (United Kingdom, Denmark, Netherlands) provide $4.28B in additional trade.

📦 Import Sources

Latvia relies heavily on Lithuania for imports (19.7%),maintaining balanced sourcing.

Manufacturing inputs come primarily from China, reflecting deep integration into Asian production networks. China's dominant position at 998.77 million encompasses electronics components, textiles, machinery parts, and consumer goods, creating both efficiency benefits and concentration risks.

The top 10 import sources account for 69.1% of total imports, with the remaining 31% distributed among 10 other suppliers.

Regional sourcing patterns reveal diversified global sourcing. European suppliers including Germany (2.60B), Netherlands (1.05B), Italy (886.01M) focus on luxury goods, machinery, and specialized chemicals.

Supply chain resilience strategies increasingly emphasize "China Plus One" approaches, with emerging as alternative manufacturing bases. The geographic proximity of major suppliers balances efficiency with risk diversification.

📦 Product Composition

🚀 Export Products

Latvia's export economy centers on diversified industrial production, with the leading export being wheat and meslin, other than durum wheat, other than seedat $656.16 million, accounting for 3.1% of total exports.

Electronics, semiconductors, and machinery contribute 1.01 billion or 4.8% of exports.

The automotive sector's dominance is evident in the export portfolio, with . This automotive specialization reflects decades of manufacturing excellence, continuous innovation in fuel efficiency and hybrid technology, and established global brand recognition.

The transition to electric and hybrid vehicles is captured in export data, with 2 categories specifically related to alternative propulsion systems, totaling $555.65M.

Beyond automotive, Latvia maintains strong positions in specialized equipment, electronic components (1.01B), and Cereals, Medicaments.

The top 20 export products collectively account for 30.1% of total exports, revealing healthy product diversification across multiple sectors.

🛒 Import Products

Energy dominates Latvia's import profile, with fossil fuels accounting for 3.06 billion or 12.1% of total imports. Crude oil leads at 1.32 billion (5.2%), followed by natural gas and coal. This energy import dependency shapes economic policy, inflation dynamics, and strategic relationships with supplier nations.

Beyond energy, critical imports include consisting of mixed or unmixed products ... (715.04M, 2.8%), Telephones for cellular networks or for ... (489.89M, 1.9%), with only spark-ignition internal combus... (289.79M, 1.1%), of an unladen weight exceeding 15,000kg (283.23M, 1.1%), machines for the reception, conversion a... (233.98M, 0.9%).Electronic components and devices total 1.09 billion (4.3% of imports), supporting domestic manufacturing and assembly operations. Pharmaceutical products represent 715.04 million (2.8%), reflecting healthcare sector demands.

The import product mix reveals structural characteristics of Latvia's economy: heavy reliance on imported energy despite industrial advancement, integration into global electronics supply chains, food security dependencies, and sophisticated consumption patterns.

The ratio of raw materials to finished goods in imports (9 : 11among top 20 products) indicates balanced import composition. Import substitution potential exists in chemicals and technology sectors through targeted industrial policies and investment.

Product diversification metrics reveal focused product specializationwith implications for economic resilience and growth potential. The technology ladder progression from 14 primary products to 4 high-tech goods indicates the economy's structural transformation and industrial upgrading trajectory.

Value addition opportunities exist in transitioning from raw material exports to processed goods, from components to finished products, and from standard to customized offerings. The product space connectivity, measuring relatedness between current exports and potential new products, suggests need for capability building to enter new product categories.

⚖️ Trade Balance Dynamics

Export-to-import ratio of 0.825 means exports cover 82.5% of import costs.

🔗 Key Relationships

The Latvia-Lithuania relationship leads at 8.75 billion in bilateral trade.View detailed analysis →

Additional major partnerships include Estonia (3.69B total trade), Poland (3.24B total trade), Finland (1.88B total trade). Regional integration through transatlantic partnerships facilitates technology transfer, market access, and production efficiency. The diversity of trading relationships—29.73B across top 10 partners—provides resilience against bilateral tensions and regional disruptions.

🏆 Competitive Position

Global rankings position Latvia as the #78 exporter worldwide,in the developing trader category. The country's share of global exports at approximately 0.209%offers opportunities for market share expansion.

Export sophistication, measured by the dominance of primary commodities, indicates potential for value chain upgrading. The revealed comparative advantage (RCA) index shows strongest competitiveness in sectors where Latvia's global market share exceeds its overall trade share by factors of 2 or more.

Competitive advantages emerge in sectors where export concentration exceeds import share, particularly inwheat and meslin, other t, consisting of mixed or un, wheat and meslin, durum w. The revealed comparative advantage is strongest in product categories representing8.2% of exports. Market positioning against regional competitors shows niche specialization opportunities.

Trade complementarity with major partners suggests regional production network participation. The export quality ladder, comparing unit values to world averages, indicates competitive pricing strategies.

Competitive dynamics are shaped by factor endowments including cost advantages and resource availability, infrastructure quality, and business environment. The export survival rate, measuring the persistence of export relationships over time, suggests need for relationship strengthening.

Innovation capacity, reflected in the technology content of exports and R&D intensity, determines long-term competitiveness trajectories. The competitive threat from emerging exporters in similar product categories requires continuous upgrading and differentiation strategies to maintain market position. Regional integration through trade agreements provides preferential access to0 markets, creating competitive advantages over non-member competitors.

🎯 Strategic Outlook

The trade profile presents both opportunities and challenges for economic development strategy. Key strengths include strong import capacity enabling technology transfer and consumption growth,diversified market access reducing concentration risk, and competitive positions in essential commodities.

Vulnerabilities include product concentration in cyclical sectors. The intersection of these factors creates a complex strategic landscape requiring careful navigation to maximize opportunities while mitigating risks.

Strategic priorities should focus on export promotion and import substitution to enhance trade competitiveness. Opportunities exist in expanding trade with Nigeria, USA, France, developing new product capabilities in higher technology sectors, and strengthening regional integration through new partnership frameworks.

The digital transformation of trade, including e-commerce, digital services, and blockchain-based trade finance, offers new avenues for market access and efficiency gains. Green trade opportunities in renewable energy, sustainable products, and carbon markets represent growing segments aligned with global sustainability goals.

The evolving global trade environment, characterized by technological disruption, geopolitical realignment, and sustainability imperatives, will fundamentally reshape Latvia's trade prospects. Success requires balanced policies addressing both improving export capacity while ensuring sustainable import financing.

Investment in infrastructure, education, and innovation ecosystems will determine the ability to climb value chains and capture larger shares of global value addition. The resilience agenda, emphasizing supply chain robustness, strategic autonomy in critical sectors, and economic security considerations, must be balanced with efficiency and openness principles.

As global trade patterns continue evolving, Latvia's position as the world's #78 exporter provides a platform for continued growth, requiring adaptive strategies, institutional strengthening, and sustained commitment to competitiveness enhancement in an increasingly complex and interconnected global economy.