Latvia possesses a unique geographical location on the shore of the Baltic Sea and at the centre of the Baltic countries. For centuries, this has placed Latvia squarely at a crossroads of international commerce. Since the 14th century, Latvia has been a major commercial hub between west and east and was at the centre of the Hanseatic League, the world’s first Free Trade Area.
According to the provisional data provided by the Central Statistical Bureau of Latvia, in 2023, Latvia exported 18.9 billion euros worth of goods, which is 11.2% less than in 2022, and imported 23.2 billion euros, an decrease by 12.5% compared to the previous year. In 2023, exports to EU countries made up 69.1% of the total volume of Latvian exports and decreased by 1.7 billion euros or 11.4% compared to 2022.
In 2023, machinery and mechanical appliances, electrical equipment, wood articles, and prepared foodstuffs comprise the most significant commodity groups in Latvian exports and constituted 16.2%, 15.1%, and 9.8%, respectively, followed by chemical products, mineral products, and vegetable products.
The most important commodities among Latvian imports were machinery, mechanical appliances, and electrical equipment, transport vehicles, mineral products, and chemical products, making up 19.3%, 13.2%, 11.4%, and 10.2% of the total value of imports.
In 2023, Latvia’s biggest trading partners were Lithuania (19.8% of Latvia's total trade turnover), Estonia (9.9%), Germany (9.3%), Poland (7.6%), and Sweden (4.4%).