Latvian wheat export earnings more than double Latvijas dzelzceļš's earnings from freight services exports

Economic growth and wealth growth are driven by domestic consumption and foreign trade. The stability of Latvia's domestic consumption, despite a shrinking population, is ensured by the redistribution of tax money and the flow of EU money. And Latvia's wealth growth, which has continued during the pandemic, has been driven by Latvian companies that are able to export their products and services.

Latvia's financial services export earnings in 2014 and 2015 were over half a billion USD per year. The reforms of the Krišjānis Kariņš government have effectively stopped foreign companies from banking in Latvia and financial services exports (and their impact on GDP) have fallen by $750 million over three years 2018-2020. The negative impact of these "reforms" has not been felt directly by the Latvian economy, as it has been offset by the growth of exports in construction, wood processing, agriculture, food industry, and other industries unrelated to government policy. For example, Latvian exports of construction services contributed USD 420 million to income in 2020. This was double compared to 2016. Latvia ranked 7th in Europe in per capita income from construction services exports (USD 223) in 2020.

In 2020, the article on Latvia's grain export success was of great interest to many readers, especially the finding that, according to the International Trade Center's calculations, in 2020 Latvia was third in the world in terms of rye exports. In 2020, Poland exported 1.29 million tons of rye, Germany 265,000 tons of rye and Latvia exported 168,000 tons of rye. Latvia was ahead of Canada, Sweden, Lithuania, Estonia, the Czech Republic, France and other countries in terms of rye exports in 2020. Latvia's rye export earnings in 2020 were USD 30 million and the main buyers of Latvian rye were companies from Spain, Russia, Germany, Estonia, Lithuania and Belgium.

Let us recall that Latvia was ranked first in Europe in per capita income (USD) from rye exports in 2020. In 2020, exports of this commodity generated an income of USD 17.4 per capita in Latvia. Latvia's share of the global rye market in terms of export earnings was 6.7%.

However, Latvia also has a significant global and European presence in the export of other cereal-related products (excluding oilseeds and minor crops).

In 2020, Latvia ranked 14th in the world and 9th in Europe in total wheat exports. Latvia's income from wheat exports in 2020 was USD 645 million. Latvia ranked first in Europe in per capita income from wheat exports in 2020 (USD 341).

The economic importance of wheat exports and their impact on the Latvian economy is more than twice the income of Latvijas Dzelzceļš from the export of freight transport services.

In 2020, Latvia ranked 26th in the world in total barley exports. Latvia's income from barley exports in 2020 was USD 23.6 million. Latvia ranked 8th in Europe in per capita income from barley exports (USD 12.5) in 2020.

Latvia was 10th in the world and 8th in Europe in total oats exports in 2020. Latvia's income from oats exports in 2020 was USD 17 million. Latvia ranked 3rd in Europe in per capita income from oats exports (USD 9.2) in 2020.