Latvian Exports Drop Sharply In May 2008

According to the latest data from Latvijas Statistika, exports dropped in May (to 369.7 million lats) from 403.4 million lats. At the same time imports were down from 688.5 million lats in April to 599 million lats with the result that the trade deficit was down from 285.1 million lats in April to 229.3 million lats. Year on year exports were up 6.2% over May 2007 and imports were down 11.5% year on year.



Compared to April, in May 2008 the most rapid decrease were in the exports of paper and paper board, and paper articles – by 60.7%, of furniture, including mattress and articles of bedding and similar furnishing – by 29.0%, of electrical machinery and equipment – by 22.8%, of products of prepared fish, crustaceans, molluscs and preserves – by 20.8%, of sawn wood – by 19.4%. Exports of agglomerated and non-agglomerated peat increased by 25.2%, of milk, cream and milk products, excluding butter, cheese and curd – by 20.8%, of iron and non-alloy steel – by 12.9%, of unprocessed wood – by 8.2%.


If we look at the evolution of industrial output up to May:



And retail sales:



It is hard to imagine that Q2 2008 GDP will contain much in the way of good news.