Energy price hikes, the continuing pandemic and geopolitical tensions did not seem to affect Lithuania’s exports growth in 2021.
Statistical data analysis by Enterprise Lithuania, the government’s business promotion agency, showed that the country’s goods exports grew by 20.5% YoY.
Export growth rates remained similar throughout the year. The most significant growth was recorded in the second quarter of 2021 due to the effects of the low base of the previous year, when pandemic restrictions on business activities came into place.
“An overview of the goods exports indicators for 2021 leads to a conclusion that Lithuanian exporters have adapted to the challenging geopolitical and economic environment,” Jone Kalendiene, head of Enterprise Lithuania’s Research and Analysis Division, is quoted in a press release. “Their operating results were among the best in a decade.”
Exports of Lithuania-origin goods had the greatest impact on overall growth, she added.
The annual growth Lithuania-made goods exports was 25.9% (20.7% excluding petroleum products), while reexports increased by 12.7% (10.6% excluding petroleum products).
Exports of chemicals and chemical products have had the strongest impact on export indicators, accounting for almost one third of the increase.
The contribution of other main exporting sectors was significant as well: petroleum products industry (7%), engineering industry (4.2%), furniture (2.5%) and timber industry (2.4%).
Meanwhile, agriculture and tobacco industry exports contracted (-0.3% and -1% respectively).
In 2021, the main export markets for products of Lithuanian origin were Germany, the US, Poland, Latvia and the Netherlands. The five countries accounted for 40%.
The main reexport markets included Russia, Latvia, Poland, Estonia and Belarus (around 60%).
“Statistics show that geopolitical tensions in the east have not had a significant impact on Lithuania’s export results. Belarusian, Russian, Kazakhstani and Chinese markets account for a very small share of exports of Lithuanian origin, therefore, their impact on overall export indicators is rather small,” according to Kalendiene.
In 2021, Belarus was the 28th, Russia 17th and Kazakhstan 48th on the list of export markets for Lithuania-made goods. In all, they accounted for 2.5% of total exports.
The exports of Lithuanian goods to Belarus increased by 1.6%, to Russia by 21% and to Kazakhstan by 18.1%.
Meanwhile, the exports of Lithuania-made goods to China decreased by 30%, with the most significant reduction recorded (excluding agricultural products) in the last quarter of the year (-36.1%).
The Taiwanese market did not compensate for the loss in China – there, the exports of goods of Lithuanian origin increased by 7.8%. The Chinese market accounts for 0.8% and Taiwan for 0.1% in Lithuania’s exports value. Their joint impact on last year’s import growth indicators was insignificant.
Last year, Russia, Belarus and Kazakhstan remained among Lithuania’s main reexport directions (1st, 5th and 9th respectively). They jointly accounted for 35.1% of total reexports.
Still, reexports to Belarus inched up by 0.8%, while those to Russia and Kazakhstan shrank by 4.2% and 11.6%, respectively. Poor results in these markets were compensated for growth in other markets. Last year, the overall growth in reexports was 12.7%. (LRT/Business World Magazine)