The trade gap in Latvia widened to EUR 361.7 million in May 2019 from EUR 220.3 million in the same month of the previous year. Exports fell 2.6% year-on-year to EUR 1,068.3 million, mostly due to lower sales of machinery & mechanical appliances and electrical equipment (-47.3%); wood & articles of wood (-7.3%); iron & steel (-17.5%); beverages, spirits & vinegar (-9.2%); and mineral fuels, mineral oils & products of their distillation (-0.1%). Main export partners were: Lithuania (17.6% of total exports), Estonia (11.9%), Germany (7.4 percent) and Sweden (7.3%). Imports rose 8.6% to EUR 1,430 million, driven by higher purchases of vehicles (5.8%); mineral fuels, mineral oils & products of their distillation (21.8%); aircraft, spacecraft and parts thereof (46.4%); pharmaceutical products (11.2%); and plastics & articles thereof (7.1%). The most important import partners were: Lithuania (16.7% of total imports), Germany (10.9%), Poland (8.7%) and Estonia (8.3%). Balance of Trade in Latvia averaged -169.16 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 -330.00 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 -300.00 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.