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, shows that the country's goods exports grew 20.5 percent (excluding oil, 16.4) year-on-year.
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,” Jonė Kalendienė, 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 Lithuanian-origin goods had the greatest impact on overall growth, she added.
The annual growth Lithuanian-made goods exports was 25.9 percent (20.7 excluding petroleum products), while reexports increased 12.7 percent (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 p. p.), engineering industry (4.2 p. p.), furniture (2.5 p. p.), and timber industry (2.4 p. p.).
Meanwhile, agriculture and tobacco industry exports contracted (-0.3 p. p. and -1 p. p. 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 percent.
The main reexport markets included Russia, Latvia, Poland, Estonia, and Belarus (around 60 percent).
“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 Kalendienė.
In 2021, Belarus was 28th, Russia 17th, and Kazakhstan 48th on the list of export markets for Lithuanian-made goods. In all, they accounted for 2.5 percent of total exports.
The exports of Lithuanian goods to Belarus increased 1.6 percent, to Russia 21 percent, and to Kazakhstan 18.1 percent.
Meanwhile, the exports of Lithuanian-made goods to China decreased 30 percent, with the most significant reduction recorded (excluding agricultural products) in the last quarter of the year, 36.1 percent.
The Taiwanese market did not compensate for the loss in China – here, the exports of goods of Lithuanian origin increased 7.8 percent. The Chinese market accounts for 0.8 percent and Taiwan for 0.1 percent 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 percent of total reexports.
Still, reexports to Belarus inched up 0.8 percent, while those to Russia and Kazakhstan shrank by 4.2 and 11.6 percent, respectively. Poor results in these markets were compensated for growth in other markets. Last year, the overall growth in reexports was 12.7 percent.
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