Latvia's trade deficit narrowed to EUR 114.8 million in November of 2019 from EUR 142.8 million in the same month of the previous year. It was the smallest monthly trade deficit since November of 2017, as exports dropped 6.5 percent year-on-year to EUR 1,135.3 million, dragged down by lower shipments of wood and articles of wood (-15.3 percent) and electrical machinery and equipment (-4.8 percent). In contrast, exports of beverages, spirits and vinegar went up 4.0 percent. Imports slumped 7.8 percent to EUR 1,250.1 million, mainly due to lower purchases of machinery and mechanical appliances (-20.4 percent) and vehicles other than railway or tramway rolling stock (-19.3 percent). Balance of Trade in Latvia averaged -170.08 EUR Million from 1993 until 2019, reaching an all time high of 40.10 EUR Million in February of 1993 and a record low of -557.20 EUR Million in July of 2007.
Balance of Trade in Latvia is expected to be -210.00 EUR Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Balance of Trade in Latvia to stand at -270.00 in 12 months time. In the long-term, the Latvia Balance of Trade is projected to trend around -230.00 EUR Million in 2020, according to our econometric models.