No big drama in Lithuanian trade. Why so?
- On the back of strong momentum, the coronavirus crisis did not significantly affect Lithuanian exports, which dropped by 2.4% (excluding mineral products) during the first six months of 2020.
- Food and fertiliser production, which constitute a big share of total exports, experienced no negative effect during the pandemic; this may explain the source of resilience.
- Imports, which experienced a 7.5% slump (except petroleum) during the same period, should soon get back to normal, with consumer confidence and retail trade rebounding quickly.
Against most expectations, Lithuanian exports have not experienced a significant drop during the pandemic. In June, exports of goods of national origin (excluding petroleum) were almost 4% higher than a year ago. It seems that favourable export structure, in which food production, furniture manufacturing, and chemical industry play the first violin, has built up a greater trade resilience to globally introduced lockdowns.
The drop in imports might reflect a tendency for companies to empty their warehouses, as well as for customers to postpone non-first-necessity purchases due to the great uncertainty during the pandemic. With consumer confidence and retail trade rebounding quickly, imports should bounce back soon as well.
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Greta Ilekytė - firstname.lastname@example.org; +370 620 15270
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