FX.co ★ Latvia’s Trade Deficit Narrows in August, Signaling Possible Easing of External Imbalances

Latvia’s trade balance showed a notable improvement in August 2026, with the deficit narrowing to -342.6 million euros from -453.6 million euros in July 2026. The latest data, updated on 12 October 2026, point to a moderation in the country’s external shortfall over the month.

While the trade balance remains firmly in negative territory, the smaller deficit may indicate a shift in the relationship between exports and imports, whether through stronger foreign demand for Latvian goods and services, softer import growth, or a combination of both. Investors and policymakers will now be watching upcoming releases to see whether August marks the start of a sustained trend toward a smaller trade gap or just a temporary adjustment in Latvia’s external accounts.