Page 31 - CE Outlook Regions 2023

2.4.2 External environment
Latvia’s current account recorded a deficit of €68.53 million in
September 2022, compared with a deficit of €260.19 million in August
2022.

During the first nine months of 2022, the foreign trade turnover of Latvia
at current prices reached €34.83bn – €8.86 billion or 34.1% more than
in the corresponding period of 2021. The exports value constituted
€15.42 billion (a growth of €3.72 billion or 31.9%), whereas the imports
value comprised €19.42 billion, a rise of €5.14 billion or 36 %.

The main exports partners in September were Lithuania (18.6% of total
exports), Estonia (9.8%), Germany (6.4%) and Netherlands (6%),
whereas the main import partners were Lithuania (27.3% of total
imports), Estonia (13.5%), Poland (9.5%) and Germany (8.5%).

Foreign direct investment (FDI) increased by €166.85 million in Latvia in
September 2022. The FDI prospects for 2023 are rather bleaker than
upbeat due to geopolitical tensions.

2.4.3 Inflation and monetary policy

The Latvian finance ministry expects consumer price growth to fall to
8.5% in 2023.

31 CE Outlook 2023 www.intellinews.com