A barge heads toward the Port of Duluth melissamn / Shutterstock.com

Minnesota exports took a hit last year, dropping 8% compared to 2022 and ending the state’s two-year streak of increasing exports.

Exports totaled $24.9 billion last year, according to a report released late last week by the Minnesota Department of Employment and Economic Development (DEED). The agency cited “decreased demand for mineral oil and fuel” among the main drivers for the overall decline. Not accounting for the 65% reduction in mineral oil and fuel exports, the state’s annual levels would have been relatively flat.

Minnesota’s decline in exports outpaced nationwide exports, which fell 2% compared to the previous year.

“While we always hope to see an overall increase in exports, the growth we saw in certain industries is impressive,” DEED commissioner Matt Varilek said in a release announcing the annual results. “Nearly 118,000 Minnesotans work in goods and services industries that contribute to exports, we applaud their massive contribution to our economy.”

Minnesota’s exports of optic and medical goods grew by $291 million in 2023, while aircraft and spacecraft exports were up by about $92 million.

Minnesota reported double digit percentage increases in exports in both 2021 and 2022. Also in 2022, Minnesota reported a record-high level of exports at $27 billion. Demand for mineral oil and fuel — as well as cereal — led the state’s export surge, though that evidently was not the case last year.

Six of Minnesota’s top 10 exports declined last year, as well as demand from seven of its 10 top markets, including South Korea, the Netherlands, and China. Meanwhile, Canada and Mexico helped propel a roughly 45% jump in vehicle exports from Minnesota.

Minnesota’s export map has changed as well. Although exports to North America, Asia, and the European Union fell last year, Africa, Central America, the Caribbean and Australia all saw significant increases.

“Despite continuing global economic concerns and geopolitical disruptions, it is encouraging to see positive inroads made last year in key markets,” Minnesota Trade Office executive director Gabrielle Gerbaud said.

The full annual 2023 report is available on DEED’s website.