2009 was hard for Estonian industry

According to Statistics Estonia, in 2009 compared to the previous year, the production of industrial enterprises decreased 26%.

The rapid decline in industrial production that had started in the last months of 2008 continued in 2009 — the decrease in the industrial production remained around 30% from January till September, at the end of the year the decline slightly slowed down. In October 20%, in November 14%, in December 11% less industrial production was produced compared to the same month of 2008. The main reason of improving of the situation in the last months of the year was not the expansion of production but comparison with a lower reference base than in the previous months of the year.

In manufacturing, the production fell 28% in 2009 compared to 2008. The main reason causing the decline was a continually insufficient demand both on domestic and external markets. Despite the decline in prices the demand in domestic market was reduced by growing unemployment and decrease in wages and salaries. The export of production was hindered by the decrease of demand in the external markets resulting from the world business depression. The branches holding the largest share in production in 2009 were the manufacturing of food, wood and metal products. In 2009 compared to the previous year, the production decreased in all branches of manufacturing. The production of building materials, which is directly connected with the decline in the domestic construction market, chemical products, machinery and equipment and metals fell more than 40%. The smallest fall (less than 10%) was in the manufacturing of primary demand goods — production of food, beverages and pharmaceutical products, as well as in the manufacturing of electronic products, where the situation improved considerably during the last months.

In December 2009 the production in manufacturing decreased 11% compared to December of the previous year.

In 2009 compared to 2008, the production of electricity decreased 17%, the production of heat — 4%. The decrease in electricity production was caused by a partial replacement of own production with the imports of electricity. In December 2009 compared to December 2008, the production of electricity fell 18%, the production of heat rose 13%.

In December 2009 compared to November, the seasonally adjusted industrial production decreased 2%.

The volume index and trend of production in manufacturing,
January 2000 – December 2009 (2005 = 100)

Read more from Statistics Estonia

Decrease in retail sales slowed down

According to Statistics Estonia, in December 2009 compared to December of the previous year the retail sales of goods of retail trade enterprises decreased 15% at constant prices. The decline in retail sales which had stood within the limits of 17% during the previous months slowed down to some extent in December.

In December, the retail sales of goods of retail trade enterprises were about 5 billion kroons. The decrease in retail sales of goods was most influenced by the stores selling manufactured goods, where the retail sales decreased by 24% compared to December 2008. The retail sales of other specialized stores, such as stores selling computers and their accessories, photography supplies, games and toys, glasses, optical goods, newspapers, stationery, etc., decreased most or 35%. In stores selling household goods and appliances, hardware and building materials a sharp downward trend continued in December. In these stores the retail sales of goods decreased by a fourth. The retail sales in stores selling textiles, clothing, footwear and leather goods slowed down remarkably, where the retail sales decreased 12% compared to December 2008. The low reference base in 2008 contributed to the slowdown in the decrease of the retail sales in these stores.

In December, the decrease in grocery stores slowed down to some extent. Since July, the decline in the retail sales of these stores has steadily shown a 9% decrease every month compared to the respective month of the previous year. In November the decline accelerated to 11%, which was the greatest decrease in this activity in 2009 as compared to the previous year. In December the retail sales of grocery stores decreased 8% compared to December 2008.

Compared to November 2009, in December the retail sales in retail trade enterprises increased by a fifth in constant prices. This is a characteristic rise in December, when Christmas marketing takes place.

In December the revenues from sales of retail trade enterprises were 5.8 billion kroons, out of which the retail sales of goods accounted for 85%. Compared to December 2008, the revenues from sales decreased 15% at current prices. Compared to November 2009, this indicator increased 17%.

According to the preliminary data the retail sales of retail trade enterprises were 54.9 billion kroons in 2009, compared to 2008 the retail sales decreased 15% in constant prices.

Retail sales volume index of retail trade enterprises and its trend,
January 2002 – December 2009 (corresponding period of previous year =100)

Source: Statistics Estonia

Prices of motor fuel up 37 pct compared to year ago

According to Statistics Estonia, the consumer price index decreased 0.7% in January 2010 compared to January of the previous year and increased 0.4% compared to December.

Goods were 0.5% more expensive and services 2.8% cheaper compared to January 2009. Food products were 3.9% cheaper and manufactured goods 4.6% more expensive.

Regulated prices of goods and services have risen by 7.6% and non-regulated prices fallen by 3.1% compared to January of the previous year.

Compared to January of the previous year, the prices of motor fuel have increased the most (36.9%), which also had the biggest influence on the index. The index was more notably influenced also by the 6.2% cheaper food and by the 11.5% cheaper heat energy.

In January compared to December, the consumer price index was mainly influenced by higher prices of motor fuel and food, as well as by sales of clothing and footwear. Compared to December, the prices of heating oil increased the most (18.1%) and the prices of flight tickets decreased the most (13.8%).

The weights system of the consumer price index and the base prices used in calculations are updated every year.

In 2010 the base prices used for the calculation of the consumer price index are the December prices of the year 2009. Calculations are made on the base “December 2009 = 100″.

The weights system corresponds to the average expenditure structure of the population in the year 2009.

To ensure the comparability with the previous periods, the consumer price index is continued to be published on the base 1997 = 100. The linking month is December 2009.

Consumer price index by commodity groups, January 2010 compared to December 2009 (December 2009 =100)

Commodity group	Weight, ‰	Change December 2009 – January 2010, %
TOTAL	1 000.0	0.4
Food and non-alcoholic beverages	235.7	1.1
Alcoholic beverages and tobacco	77.4	1.7
Clothing and footwear	57.1	-3.8
Housing	169.7	1.0
Household goods	45.5	-0.3
Health	44.5	0.2
Transport	133.7	1.6
Communications	50.3	-0.5
Recreation and culture	73.8	-1.2
Education	18.3	0.2
Hotels, cafés and restaurants	37.4	-0.8
Miscellaneous goods and services	56.6	0.0

 

Change of the consumer price index by commodity groups, January 2010 compared to January 2009

Commodity group	January 2009 – January 2010, %
TOTAL	-0.7
Food and non-alcoholic beverages	-5.7
Alcoholic beverages and tobacco	1.6
Clothing and footwear	2.0
Housing	-6.5
Household goods	0.4
Health	0.5
Transport	10.7
Communications	0.3
Recreation and culture	-2.5
Education	1.3
Hotels, cafés and restaurants	-4.1
Miscellaneous goods and services	3.5

Source: Statistics Estonia

Exports of mineral products and wood increased

According to Statistics Estonia, in November 2009 exports of goods from Estonia at current prices totalled 9.1 billion kroons and imports to Estonia amounted to 10.3 billion kroons. Compared to November 2008, total exports declined by 8% but exports of mineral products (incl. petroleum products) and of wood and products thereof increased.

In November the total exports of goods from Estonia decreased 8% (0.8 billion kroons) and the total imports 21% (2.7 billion kroons) compared to the same month of 2008. The decrease in both exports and imports slowed down because the comparative base in November 2008 was lower than in the preceding months mainly caused by the worldwide economic and financial crisis. The trade deficit of Estonia amounted to 1.2 billion kroons (3 billion kroons in November 2008).

In November 2009, in exports the biggest share was held by mineral products (18% of total exports). Exports of mineral products increased 46% or 0.5 billion kroons compared to November 2008. Exports of goods related to wood (incl. wood and products thereof, paper, furniture) also increased. The main countries of destination for wood and products thereof were Finland, Sweden and Denmark.

In imports to Estonia the biggest share was held by two commodity sections, mineral products and machinery and equipment. Both commodity sections accounted for a fifth of the total imports of Estonia. Compared to November 2008, the biggest decrease was mentioned in the arrivals of machinery and equipment (by 0.9 billion kroons). Imports of plastic and rubber products and of wood and products thereof slightly increased.

In November, the main countries of destination from Estonia were Finland (19% of the total exports), Sweden (12%) and Russia (10%). Exports to Sweden and Russia declined the most (both by 0.3 billion kroons).

The main countries from where goods were imported to Estonia in November 2009 were Finland (15% of the total imports), Lithuania (14%) and Latvia (12%). Imports of goods from Russia declined significantly (by 0.7 billion kroons). But imports from Lithuania increased by 0.4 billion kroons.

Compared to October 2009, exports of goods from Estonia increased 1% and imports 5%.

Estonia’s foreign trade, January–November, 2008–2009

Month	Exports, mEEK			Imports, mEEK			Balance, mEEK
	2008	2009	%	2008	2009	%	2008	2009
January	10 154	7 267	-28	13 725	8 798	-36	-3 571	-1 531
February	10 677	7 818	-27	13 641	8 719	-36	-2 964	-901
March	10 647	8 347	-22	14 145	9 735	-31	-3 498	-1 388
April	12 332	7 740	-37	15 916	9 284	-42	-3 584	-1 544
May	11 549	8 166	-29	14 507	8 465	-42	-2 958	-299
June	10 862	9 557	-12	14 140	9 903	-30	-3 278	-346
July	10 969	8 243	-25	15 047	9 451	-37	-4 078	-1 208
August	11 142	8 126	-27	13 420	9 299	-31	-2 278	-1 173
September	12 300	9 441	-23	15 195	10 136	-33	-2 895	-695
October	13 249	8 955	-32	15 656	9 755	-38	-2 407	-800
November	9 897	9 061	-8	12 929	10 265	-21	-3 032	-1 204
Total	123 778	92 721	-25	158 321	103 810	-34	-34 543	-11 089

 See more here from Statistics Estonia website

Short story by Mati Unt receives high recognition in USA

A short story by the Estonian author Mati Unt, “Brecht at Night”, was chosen as one of the 25 best translated literary works in the United States and this is seen as a breakthrough of Estonian literature to the world market, the daily Postimees wrote.
The choice by one of the biggest book wholesale chains, Barnes and Noble, is extraordinary because never before have Estonian books been included on the list.
According to Postimees, Unt’s path to recognition started about five years ago, when representatives of Dalkey Archive Press came to Estonia at the invitation of the Estonian Literature Information Center (EKT). After meeting with literary critics and getting acquainted with the materials of the information centre, they said that Unt was the author they wished to start publishing.
EKT Director Ilvi Liive told the daily that Barnes and Noble had been the biggest bookseller in the United States and the choice of the best books was made by professionals who were not only book wholesalers but also published them. “As only two percent of the book market in America is books of translated fiction, being picked as one of the top 25 is a big breakthrough,” Liive said.
Kerti Tergem, head of the foreign communication at the center, said that Unt was the first who managed to break through in America.

Source: Estonian Review

Estonia wants to offer back office services in the financial world

A monitoring survey presented by the Development Fund in the parliament’s financial committee on Tuesday deals with the outlooks of financial services in Estonia and opportunities for the export of these services.
The chairman of the standing committee, Taavi Rõivas, said in his remarks to BNS that among the ideas surveyed was one looking at whether Estonia could serve as a provider of back office services in the financial world. Also talked about was the expertise the country can offer in investing in the financial markets of central and Eastern Europe.
Numerous problems need to be solved first, however, to strengthen the position of Estonia in the financial world. These include creating more air connections from Tallinn and having a good English-language school.
“You mustn’t underestimate the importance of social infrastructure,” Rõivas said.

Source: Estonian Review

Estonian Air to start Vilnius-Amsterdam flights in February

The national carrier Estonian Air will for the first time ever start flying between capital cities of two foreign countries, launching on Feb. 12 the Vilnius-Amsterdam route on code-sharing basis with KLM Royal Dutch Airlines.
“This is for us a landmark event for two reasons: we’re starting flights outside Estonia for the first time and our principal strategic partner so far, SAS, will be joined by KLM,” Estonian Air president and CEO Andrus Aljas said.
The co-operation of Estonian Air and KLM that started in spring 2009 when the Estonian carrier launched flights on the Tallinn-Amsterdam route has proven successful and the parties decided to deepen it. Estonian Air and KLM signed the agreement on co-operation on Vilnius-Amsterdam-Vilnius flights this week.
During the winter season the airline will be making six instead of the current three weekly flights on the Tallinn-Amsterdam route with a stopover in Vilnius. The flights will take place on Mondays, Tuesdays, Wednesdays, Thursdays, Fridays and Sundays.
In summer Estonian Air will resume direct flights between Tallinn and Amsterdam, continuing direct flights on both the Tallinn-Amsterdam and the Vilnius-Amsterdam route.

Source: Estonian Review

Parks of Nelja Energia produce 64 pct of wind energy

Wind parks operated by the renewable energy producer Nelja Energia generated 110 gigawatt-hours of electricity last year which makes up 64% of the total produced in Estonia in 2009.
A ccording to data of the transmission grid operator Elering, wind parks fed 172 GWh of electricity into the power system last year.
The head of Nelja Energia, Martin Kruus, explained to BNS that year 2009 was generally speaking a poor year in terms of wind and the output fell short of projections.
The Pakri wind farm, for instance, whose capacity is 18.4 megawatt, last year generated 37.77 GWh of electricity, which is 27% less than a year earlier.
Nonetheless, Nelja Energia had a busy year, Kruus said, as the company installed three new wind parks — the 16-megawatt Tooma and nine-megawatt Vanaküla in Estonia and the 14-megawatt Sudenai in Lithuania.
Nelja Energia also started the construction of the 6.9-megawatt Virtsu III in Estonia, which will be completed in the first quarter of this year. The Mockiai wind farm in Lithuania, with a capacity of 12 megawatt, is scheduled to be finished in the third quarter.
Nelja Energia is also developing a project for a large offshore wind farm near the island of Hiiumaa.
In addition to the projects mentioned above, the company will this year continue work on the 24-megawatt Aseri wind park in West-Viru County and a six-megawatt wind farm at Kunda on the northern coast.
The company is developing in co-operation with the national power utility Eesti Energia a wind farm with a capacity of 52 megawatt at Paldiski.

Source: Estonian Review

Estonia among free countries in Fresh Freedom House ranking

The New York-based Freedom House once again ranked Estonia among Free countries in its fresh annual survey of political rights and civil liberties, Freedom in the World 2010.
Estonia’s political rights score was 1, just like its civil liberties score. Freedom House gave countries from one to seven points in these two categories, with the countries seen as offering the greatest freedoms to their residents getting one point.
Estonia scored one point in both categories just like most other European Union member states. Latvia, however, was given 2 for political rights and 1 for civil liberties. Lithuania’s scores were 1 and 1, just like Estonia’s. Russia’s political rights score was 6 and civil liberties score 5, putting it in the Not Free category.
The number of countries designated by Freedom in the World as Free in 2009 stands at 89, representing 46% of the world’s 194 countries and 46% of the world population.
The number of Partly Free countries declined to 58, or 30% of all countries assessed by the survey, comprising 20% of the world’s total population.
The number of countries deemed to be Not Free increased to 47. Over 2.3 billion people live in societies where fundamental political rights and civil liberties are not respected. China accounts for half of this number.
Freedom House said that for the fourth consecutive year, global declines in freedom outweighed gains in 2009. This represents the longest continuous period of decline for global freedom since 1972 when the report started to be compiled. “The news for 2009 is cause for real concern,” said Arch Puddington, Freedom House Director of Research.
In this year’s findings, five countries moved into Not Free status, and the number of electoral democracies declined to the lowest level since 1995.
The countries moving into Not Free status were Bahrein, Jordan, Kazakhstan, Kyrgyzstan and Yemen.
Sixteen countries made notable gains, with two countries improving their overall freedom status. The most significant improvements in 2009 occurred in Asia.

Source: Estonian Review

Estonian population stands at 1.34 million

According to Statistics Estonia, by preliminary estimation the number of population in Estonia on 1 January 2010 was 1,340,000. Due to the decrease in the number of deaths the decline in population number slowed down last year.

In 2009, the number on population decreased by about 400 persons due to natural increase which is the smallest decrease since 1992. However, the number of live births decreased for the first time during the last eight years. 15,807 live births were registered in 2009, i.e. 221 birth less than in the previous year. There were 16,201 deaths, i.e. about 500 deaths less than in the previous year. 5,409 marriages were contracted and 3,193 marriages were divorced which is correspondingly 718 and 308 marriages less than a year before.

Births, deaths and natural increase, 1991–2009

In Estonia two population numbers are in use — based on the data of Statistics Estonia and of the Population Register. The number of population published by Statistics Estonia is based on the 2000 Population and Housing Census data and is complemented with the annual data on registered births and deaths. The Population Register is based on the registration of a person’s place of residence. Internationally the Census data are considered more accurate than the Register data because people may have different reasons for the alteration of their data. However, the quality of the data of Statistics Estonia is being deteriorated by the long time since the last Census and the fact that population number does not include migration data. Thus it is very important that the 2011 Population and Housing Census would be a success so that we could switch to one population number.

Natural increase is the difference between live births and deaths during the year. Positive natural increase shows the predominance of births and negative natural increase — the predominance of deaths. Since 1991 the natural increase of Estonia has been negative.

Source: Statistics Estonia