Latvian exporters are currently “pulling out” the rest of the economy, and it is likely that strong external demand will continue to help grow our producers, although economists believe that challenges will continue to pose challenges.
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In February 2021, Latvia’s foreign trade turnover amounted to 2.33 billion euros, which in real prices was 4.6% more than a year ago, including an increase in the value of exports of goods by 7.5% and a value of imports of 2%, according to Preliminary data from the Central Statistical Bureau.
After declining in January 2021, the value of exports increased in most commodity groups in February. Exports of timber and timber products, mineral products, cereals and pharmaceuticals grew faster. On the other hand, exports of iron, steel and articles thereof, land vehicles, beverages and tobacco decreased on an annual basis, Ministry of Economy Analyst of the Analytical Service Edmunds Gergelevičs.
The February result has pushed aside all cautious forecasts, allowing for a slightly more optimistic outlook for the first quarter of the economy, although we will not avoid a downturn, says JSC “SEB bank “economist Dainis Gašpuitis.
The rapid growth of Latvia’s exports is currently mainly ensured by strong external demand, emphasizes “Citadel The world economy continues to recover from the shock caused by the Covid-19 pandemic, and according to the latest forecasts of the International Monetary Fund (IMF), the world economy will grow by more than 6% this year. In developed countries, extensive fiscal and monetary support measures have Covid-19 physical depression measures have significantly reduced the availability of many services, leading to a significant increase in demand for various goods and a shortage of prices in some sectors, as well as rising prices.
There are a few months ahead when the export data of goods will look wonderful, “Luminor“Economist Pēteris Strautiņš. Last year, exports decreased from 1.099 billion euros in March to 910.1 million euros in May. Therefore, in April and May, the annual growth of merchandise exports is likely to exceed 20%. In the second half of summer and autumn this year may not be so good, farmers report, but the lumber price bubble may have burst.
“Swedbank“Senior economist Agnese Buceniece emphasizes that the performance of Latvia’s trading partner economies has been generally good in recent months, which, together with increasing public immunization, is favorable for further growth in external demand. Exporters will have opportunities to sell their goods, but delays and costs , as well as the lack and price increase of individual components.
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