Foreign trade deficit 5 times less than May last year

According to the preliminary data of Statistics Estonia, in May 2009 exports of goods from Estonia amounted to 8 billion kroons at current prices and imports to Estonia 8.6 billion kroons. Foreign trade deficit was five times less than in May of the previous year being smaller than that last in September 1995.

Compared to May of the previous year, exports from Estonia decreased by 30% or 3.5 billion kroons and imports by 40% or 5.9 billion kroons. Foreign trade deficit decreased to 0.6 billion kroons (2.9 billion kroons in May 2008) and the decline was caused by a faster decline in imports. Compared to April of the current year, exports increased by 5% but imports decreased by 8%. Trade deficit was registered as two thirds of that in April. Foreign trade deficit started to decrease significantly from January this year.

In May the value of goods exported from Estonia to the EU countries (EU 27) was 5.6 billion kroons with the share of 70% of Estonian total exports. Compared to May of the previous year, exports decreased by about a third. Exports from Estonia to non-EU countries or the so-called third countries amounted to 2.5 billion kroons decreasing by more than a quarter compared to May 2008.

Imports from the European Union (EU 27) countries to Estonia totalled 6.8 billion kroons with the share of 79% of Estonian total imports. Imports from the EU countries decreased by 4.7 billion kroons or 41% compared to May of the previous year. Imports from other countries than the EU accounted for 1.8 billion kroons decreasing by 39% compared to May of the previous year.

The foreign trade deficit with the EU countries accounted for 1.2 billion kroons (3.4 billion kroons in May 2008). At the same time, Estonia’s trade balance with other countries than the EU was positive or exports to those countries exceeded imports approximately by 0.7 billion kroons.

Estonian foreign trade, January 1995 – May 2009

Statistics Estonia releases the first estimates about foreign trade on the 40th day after the end of the reference period which are then revised on the 54th day. Statistics Estonia will release a more detailed overview about foreign trade for May on the 24th of July.

Source: Statistics Estonia

Hotel prices same as 2003

According to Statistics Estonia, in May 189,000 tourists stayed in accommodation establishments of Estonia, which was 16% less than in the same month of previous year. The average cost of a guest night has fallen down to the level of 2003, Statistics Estonia reports.

In recent years, the number of domestic tourists grew rapidly in May, i.e. the first month of tourism season, compared to the same month of previous year. This year 58,000 domestic tourists used the services of accommodation establishments which was a fifth less than in May of previous year. 2% more domestic tourists than in the same period of previous year stayed in accommodation establishments of Ida-Viru county, in other counties of Estonia the number of domestic tourists decreased.

In May 132,000 foreign tourists used the services of accommodation establishments which was 13% less than in the same month of previous year. The number of foreign tourists decreased from all main tourism partner countries, except Russia. The number of Finnish tourists who used the services of accommodation establishments decreased by about 6,000 tourists, and more than 3,000 fewer tourists arrived from both Latvia and Germany. Compared to the same period a year ago, 14% fewer foreign tourists visited the accommodation establishments of Tallinn where 70% of the foreign tourists using the services of accommodation establishments stayed. At the same time, more foreign tourists stayed in the accommodation establishments of Lääne-Viru, Lääne, Viljandi, Pärnu and Ida-Viru counties compared to May of the previous year.

In May 839 accommodation establishments with 18,000 rooms and 39,400 beds were available for tourists. The room occupancy rate was 37%. The room occupancy rate stayed nine percentage points lower than in May 2008. The room occupancy rate was higher than the average in the accommodation establishments of Harju, Pärnu, Tartu and Lääne counties.

In May the average cost of a guest night in an accommodation establishment was 482 kroons, which was 13% cheaper compared to May of the previous year and five kroons cheaper than in May 2003.

Read more here

Russian visa application process simplified for border residents

As a result of co-operation between the Estonian and Russian foreign ministries, the Foreign Ministry of the Russian Federation notified the Estonian Foreign Ministry today that it will begin issuing visas to the Russian Federation by a simplified process to residents of border areas whose travel is related to science, cultural or art events, including university and other exchange programmes. To this end Russia will issue free multiple-entry visas to residents of border areas visiting Russia.

Estonian Foreign Minister Urmas Paet confirmed that Estonia is interested in continuing to cultivate good relations in the cultural and education fields, including developing cultural ties between Estonia and Russia’s border areas. “Facilitating border crossing for border residents is an essential step for active cultural co-operation. This is also supported by the cultural co-operation agreement between Estonia and Russia signed at the beginning of this year,” said Paet. For an example of good cultural co-operation, Paet mentioned the Estonian cultural days that took place this summer for the first time ever in St. Petersburg.

In addition to participants in science, cultural and art events, those border residents planning to visit the burial sites of loved ones can also apply for a visa to the Russian Federation using the simplified process. In such cases, the border resident applicant is issued a free single-entry Russian visa.

Source: Estonian Ministry of Foreign Affairs

Tallinn Medieval Festival 9-12.07

The 10th Medieval Festival in the Old Town of Tallinn will take place from 9-12 July 2009.

Here in Tallinn, where so much history has left a rich legacy of medieval street system and the whole central district, we are pleased to present you a real Medieval Market, complete with Medieval Traders, Craftsmen, Musicians and Actors.

This is a big celebration for all the people and visitors in Tallinn, desirably dressed in medieval clothes and surely taking part of living history attractions and the abundant market in the Town Hall Square.

PROGRAM
IN THE TOWN HALL SQUARE AND ON NIGULISTE HILL A.D. 2009
9 – 12 July

Dancing, singing, games and other pleasures of life every day from noon to 6 pm in the Town Hall Square.
Troubadours, jesters, fire-eaters, heralds and contortionists far and wide on stage!
Best handicraft is sold at Craftsmen`s Market in the Town Hall Square, open every day from 10 am to 6 pm.

Thursday, 9th of July
11:40 Opening Procession from Viru Gates

In the Town Hall Square
12:00 Opening ceremony
13:00 Choir of Bagpipes
14:00 Folk from the restaurant Olde Hansa
15:00 Choir “Canorus”
16:00 Magical Mystical Theatre
17:00 Medieval dances by Leigarid

In the Town Hall a medieval carnival commences at 7 pm!
Main performer early music ensemble TORMIS from France!

Friday, 10th of July
In Town Hall Square
12:00 Folk from the restaurant Olde Hansa
12.30 Chamber of the Limping Wolf
13:00 Medieval dances by Ballare
14:00 Musica Ficta
15:00 Magical Mystical Theatre
16:00 Medieval dances by Leigarid
17:00 Vexilla Regis
17:30 Medieval dances by Ballare

On Niguliste Hill
13:00 Archery Tournament commencing in the Town Hall Square

Workshops in the Town Museum of Tallinn (Vene Str 17):
12:00 Excursion to a Medieval Dwelling House guided by Hando Pajus
13:00 Excursion into a cellar of medieval dwelling house guided by Ene Heimvell
Participation with a museum ticket.

12:00 Orientation game: the Middle Ages in Tallinn
Searching the places in the Old Town related to the Middle Ages (for children aged from 10 to 15)

In an Apothecary of the Town Hall, Town Hall Square 11
1 – 4 pm Bustling apothecary apprentices
14:00 Kristiina Hiiesalu speaks about the treatment in the Middle Ages

22:00 A play „Under the Eye of Old Thomas” by Heritage Theatre Loomine. Tales and legends of the old Tallinn. Tickets available in Piltilevi and in the Danish King`s Garden before the beginning.

Saturday, 11th of July
In the Town Hall Square
12:00 Saltatores Revalienses and early music ensemble “Rondellus”
13:00 Licentia Poetica
14:00 Medieval dances by Leigarid
15:00 Musica Ficta
16:00 Zahira

Marzipan Market in front of a coffeehouse Maiasmokk in Pikk Street from 11 am to 5 pm. Marzipan workshops (modelling and colouring).
11:00 – trading and making commences.
At 12, 13, 14, 15, 16 – announcement of the best master of making marzipan figurines. Awards!
16:00 Old music concert

In the Town Hall Apothecary, Town Hall Square 11
1 – 4 pm – Bustling apothecary apprentices

22:00 A play „Under the Eye of Old Toomas” by Heritage Theatre Loomine. Tales and legends of the old Tallinn. Tickets available in Piltilevi and in the Danish King`s Garden before the beginning.

In the Church of Holy Spirit Dolores Hoffmann gives lectures on medieval stained glass (in Estonian and in Russian)

Sunday, 12th of July
A Day of Strolls

In the Town Hall Square
12:00 Musica Ficta
13:00 Licentia Poetica
14:00 Medieval dances by Leigarid
15:00 Street Theatre „A Tale of a Lazy King and Smart Spider”
16:00 Magical Mystical Theatre

Strolls with a guide start at 1 pm in Estonian, at 2 pm in Russian and at 3 pm in English.

22.00 A play „Under the Eye of Old Toomas” by Heritage Theatre Loomine. Tales and legends of old Tallinn. Tickets available in Piltilevi and in the Danish King`s Garden before the beginning.

The Town Hall is opened from cellar to attic Mon -Sat 10-16.

At the Towers Square a Festival of Flowers take place from dusk till dawn: medieval herb gardens.

Workshops in the Town Hall and on Niguliste Hill:

Weaving a cloth with handlooms of upright position
Feltmasters
Spinning with spindle
Glass painting
Making of paper
Games with pearls
Making of toys
Making of leather purses
Block printing
Making of clay pots
Woodwork
Making of copper items
Medieval hairdresser, etc

Competition and skill games – first steps of how to handle sword, kübi – a medieval sharpthrow game from Svea, medieval football, trials of strength etc.

Access to the town wall towers from Kuldjala Tower (from the yard of Kodulinna Maja – Gümnaasiumi 3).

Source: http://www.folkart.ee/eng/e_keskajaturg.php

Estonia in TOP 5 for undeclared work

Estonia among the first five for undeclared workforce, it appears from data released by Eurofound, E24.ee reports. 11 pct of Estonian residents said that they’ve done undeclared work in the past year. Estonia is fourth with that result – Denmark (18 pct), Latvia (15 pct) and Netherlands (13 pct) are first three and fifth is Sweden (10 pct).

Some five percent of workers in the 27 EU Member States and Norway carry out undeclared work, seriously affecting public finances by tax and social contributions, according to a new report from Eurofound, the Dublin-based EU Agency.

Across the EU, a majority (55%) of all undeclared work is conducted for friends, family and neighbours, the report found. A further 20% is conducted on a self-employed basis for other private persons or households, while just 20% related to undeclared waged employment. The remaining 5% is unrecorded or not known.

There are, however, big differences between countries. On the one hand, in some countries, the participation rate is much higher, including Denmark (18%), Latvia (15%), the Netherlands (13%), Estonia (11%) and Sweden (10%). In the other countries, levels are low, for example in Germany (3%), Ireland (4%) and in Romania (4%). While undeclared workers participated in this form of work for an average of almost 200 hours during the past 12 months across the EU as whole, undeclared workers in southern Europe appear to have worked an average of 350 hours in this sphere compared with 330 hours among central eastern Europeans, 110 hours among those in Continental Europe and 60 hours in the Nordic countries.

Read more: BBN and Eurofound

Administrative prices not flexible enough

According to Statistics Estonia, the cost of the Estonian CPI basket remained unchanged in June. The price level was 0.9 per cent lower compared to June 2008. Euro area inflation was at a historical low, being 0.1 per cent down from a year ago.

The export outlook of Estonian enterprises is still bleak and the decline in household incomes also inhibits growth in the domestic market. Consequently, the prices of several goods decreased further in June. In addition, a seasonal drop in food and clothing prices could be noted. However, the rise in motor fuel prices increased the general price level by around 0.4 per cent.

The prices of various services went up in June, partly owing to the price hike of notary fees. Offsetting the decrease in incomes (which has resulted from the current market low) by a rise in prices is exceptional and possible only in these segments of the economy where market forces are weak. This applies to most of the public utility services, public transport and the energy market, where prices have not yet come down from the peak. Administrative price-setting must be flexible and take into account the general economic situation, the level of expenditure and the principle of efficiency. Therefore, the rise in VAT should not be fully passed through to the consumer.

The fees of banking services have gone up approximately 10 per cent over the past three months. Although this does not make a substantial contribution to the general price rise, it indicates that banks are offsetting the decrease in incomes from other sources.

In June, the Government decided to implement a number of tax changes, which may affect inflation both this year and the next. However, these changes will not jeopardise the coming period of low price pressures.

Based on preliminary estimates, the average annual inflation rate will be 0.5 per cent; that is 1 percentage point higher than expected in the spring forecast of Eesti Pank. The next inflation forecast of Eesti Pank will be published in October.

Source: Martin Lindpere, economist of Eesti Pank

Consumer price index in June

According to Statistics Estonia, the consumer price index decreased by 0.9% in June 2009 compared to June 2008 and was 0.0% compared to May 2009.

The consumer price index decreased continuously compared with the same month of the previous year. Thereby goods were 3% cheaper and services 3% more expensive compared to June of the previous year. From goods food products were 0.5% and manufactured goods 5% cheaper.

Regulated prices of goods and services have risen by 4.0% and non-regulated prices fallen by 2.4% compared to June of the previous year.

Compared to June of the previous year, the consumer price index was mainly influenced by alcoholic beverages and tobacco (the price increase together 17%), by the price decrease of food (-6.3%) and by the price decrease of motor fuel (-20.8%). Milk and dairy products (price decrease 15.6%) gave nearly a half of the impact of food on the index.

In June compared to the previous month, the consumer price index was mainly influenced by the 6.5% price increase of motor fuel and by a continuing price decrease of food.

Change of the consumer price index by commodity groups, June 2009

Commodity group	June 2008 – June 2009, %q	May 2009 – June 2009, %
TOTAL	-0.9	0.0
Food and non-alcoholic beverages	-6.1	-1.5
Alcoholic beverages and tobacco	17.0	-1.0
Clothing and footwear	0.4	-1.3
Housing	-0.1	-0.1
Household goods	2.3	0.2
Health	4.6	0.2
Transport	-9.8	3.0
Communications	-0.9	0.0
Recreation and culture	-0.1	-0.9
Education	5.6	-0.2
Hotels, cafés and restaurants	0.1	0.0
Miscellaneous goods and services	7.5	1.5

Source: Statistics Estonia

Investment to Latvia is surrounded by secrecy

Nedela S.A. under investment banker Kalle Norberg’s command bought Bonnier’s Latvian businesses on Friday, but the source of the money is unclear. Skype Estonian founders could have been behind the deal, according to information available to Äripäev, Äripäev reports.  Nedela S.A. is owned by Aleksandrs Tralmaks, former member of Latvian biggest daily Diena’s management board. The purchase was 100 pct finances by Luxembourg Financial Services (LFS), which’s founder and big holder is Kalle Norberg.

Äripäev estimates that the price for Latvian largest daily Diena and business paper Dienas Bizness could have been about EEK 1 bln, considering real estate owned by Diena.

Read further from BBN

Government increased unemployment insurance fee

The government approved increasing unemployment insurance fee 4.2 pct from August 1 to December 31 so that the Unemployment Fund could cover their higher expenditures due to the economic downturn and new layoff rules, aripaev.ee reports.

Therefore employees have to pay 2.8 pct of their salary and employer adds 1.4 pct. According to the forecast the unemployment benefits will amount to EEK 1,867 bln, which is shared between 57,475 people.

The Unemployment Fund’s expenditures will be more than EEK 3 bln this year, according to the Ministry of Finance’s spring forecast. If employee would pay 2 pct and employer 1, then the fund would collect EEK 1.5 bln as payments. That would mean that the Unemployment Fund would have to take EEK 1.5 bln from their reserves.

Source: BBN

BLRT may buy Loksa Shipyard

Balti Laevaremonditehase Grupp (BLRT) may buy Loksa Shipyard, which has been on sale since last autumn, logistikauudised.net reports.

“I talked to our lawyers and appeared that we have signed confidentiality agreement on the matter of Loksa. That’s why we can’t comment the issue,” Anu Hallik, BLRT’s communication director said.

Loksa Shipyard has been on sale since the beginning of last September. Fjodor Berman, the owner of BLRT told dv.ee on autumn that he considers all the possibilities to buy the company.

He said that that he’s aware that Loksa Shipyard is on sale, he’s familiar with the matter and interested in the factory.

“In the strategic plan BLRT didn’t have the intention to buy this factory, but we discuss it and review all options to buy Loksa Laevaremonditehas,” Berman said.

The owner of Loksa Shipyard is Danish company Odense Steel Shipyard LTD.

Finn Buus Nielsen, the CEO of the Loksa Shipyard said that the sale of the factory gives them a chance to focus all attention to ship construction in Lindö (Denmark – edit) and developing their subsidiary Baltija in Lithuania.

Odense Steel Shipyard LTD, which is member of A.P. Moller/Maersk Group, has hired Danske Market to sell Loksa Shipyard.

Source: BBN