In September imports of goods was the biggest of this year

According to the preliminary data of Statistics Estonia, in September 2009 exports of goods from Estonia amounted to 9.3 billion kroons at current prices and imports to Estonia made up 10.1 billion kroons. This year imports exceeded the level of 10 billion kroons for the first time.

According to the preliminary data of Statistics Estonia, in September 2009 exports of goods from Estonia amounted to 9.3 billion kroons at current prices and imports to Estonia made up 10.1 billion kroons. This year imports exceeded the level of 10 billion kroons for the first time.

Compared to September of the previous year, the value of exports of goods decreased by 24% (3 billion kroons) and that of imports by a third (5.1 billion kroons). Compared to August 2009 exports increased 20% and imports 8% which was partly caused by the seasonality influenced by the seasons.

In September, the foreign trade deficit amounted to 0.8 billion kroons, which is about four times less compared to September of the previous year (in September 2008 the foreign trade balance was 2.9 billion kroons).

In September the value of goods exported from Estonia to the European Union (EU27) countries was 6.4 billion kroons, accounting for 69% of Estonia’s total exports. Compared to September of the previous year, exports to the EU27 countries decreased by nearly a quarter (by 2 billion kroons). Exports from Estonia to non-EU countries or the so-called third countries amounted to nearly 2.9 billion kroons, which is also by a quarter less compared to September 2008.

In September, imports from the European Union (EU27) countries to Estonia totalled 8 billion kroons with the share of 79% of Estonia’s total imports. Imports from the EU countries decreased by over a third compared to September of the previous year. Imports from other countries than the EU amounted to about 2.1 billion kroons, which is 28% less compared to September of the previous year.

The foreign trade deficit with the European Union countries amounted to 1.6 billion kroons (3.8 billion kroons in September 2008). At the same time, the trade balance with other countries than the EU was slightly on the positive side or exports to these countries exceeded imports by approximately 0.8 billion kroons.

Estonia’s foreign trade, January 2008 – September 2009

Source: Statistics Estonia

Estonia’s economy to grow in the next two years

Deputy Governor of Eesti Pank Märtne Ross said at a presentation to foreign analysts and journalist in Helsinki that Estonia’s economic growth would be around 1 % in 2010 and close to 5% in 2011.

“Economic growth plays an important role in the recovery of foreign demand, since most of the Estonian economy is closely integrated in the supply chain of the companies of Finland and Sweden. With Estonia close to meeting all the Maastricht criteria, the perspective of acceding to the euro area, also supports growth. Postponement of the changeover would put a drag on growth and keep it at lower levels,” said Ross.

Andrus Säälik, Head of the Macroeconomic Policy Department of the Ministry of Finance said in his presentation that the decisions passed in 2009 to contain the fiscal deficit are already showing results and keeping the deficit below 3% is an accomplishable goal. “We are monitoring the fiscal deficit developments very closely and should it become necessary, we are also prepared to take additional measures to improve the position,” he added.

When speaking about the 2010 budget, Säälik highlighted as positive and growth-enhancing factors a considerable increase in investment and the channelling of additional resources into education and business.

Source: Bank of Estonia

Dairy products 16 pct, vegetables 21 pct cheaper than last year; rents have fallen 33 pct

According to Statistics Estonia, the consumer price index decreased 2.2% in October 2009 compared to October 2008 and 0.1% compared to September 2009.

Compared to the same month of the previous year, the consumer price index decreased for the first time by more than 2%. Goods were 3.1% and services 0.5% cheaper compared to October of the previous year. At the same time food products were 4.7% and manufactured goods 1.6% cheaper. Regulated prices of goods and services have risen by 0.4% and non-regulated prices fallen by 2.9% compared to October of the previous year.

Compared to October of the previous year, the consumer price index was mainly influenced by the price decrease of food by 6.9%, of which dairy products accounted for over a third (price decrease 15.5%) and vegetables for more than a fourth (price decrease 20.6%). Of housing expenditures, rents have fallen 33.4% and the price of heat energy has decreased 11% compared to the same month of the previous year. Motor fuel was 5.1% cheaper.

In October compared to September, the consumer price index was mainly influenced by the termination of sales of alcoholic beverages, by the decrease in prices of motor fuel, by special offers of bread products and by the price increase of heat energy by 1.3%.

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

Commodity group	October 2008 – October 2009, %	September 2009 – October 2009, %
TOTAL	-2.2	-0.1
Food and non-alcoholic beverages	-6.6	-0.2
Alcoholic beverages and tobacco	1.0	1.4
Clothing and footwear	0.9	0.8
Housing	-5.6	-0.1
Household goods	1.9	-0.1
Health	2.3	-0.3
Transport	-3.1	-0.7
Communications	0.5	0.0
Recreation and culture	-0.5	-0.7
Education	2.2	0.1
Hotels, cafés and restaurants	-3.0	-0.7
Miscellaneous goods and services	7.9	0.0

Source: Statistics Estonia

Soomaa National Park joins distinguished list of European wilderness areas

Soomaa National Park, the so-called kingdom of bogs, last week became the first Estonian nature preserve to make it into the PAN Parks Network, which includes Europe’s finest natural areas. This is an acknowledgment of quality that will increase the international notoriety of this unique natural locale. The bogs, which are almost completely untouched by human activity, became the 11th member of PAN Parks.
To get the PAN Parks certification, the Estonian park was subject to independent international verification according to the PAN Parks Principles and Criteria, including environmental and sustainable tourism aspects. Zoltan Kun, Executive Director of PAN Parks Foundation, added, “We are glad to welcome Soomaa National Park in our network as it represents the largest intact peat bog system in Europe preserved as wilderness. The area is also special as it has unique tourism potential with a well-developed trail system providing extraordinary wilderness experience for visitors.”

Source: Estonian Review

More births than deaths registered this year

The number of births registered in Estonia during the first nine months of this year was bigger by 48 than the number of deaths, it appears from figures made available by the Interior Ministry.
From January through April the monthly number of deaths was still bigger than that of births. During the four-month period vital statistics officials registered 5 226 births and 5 673 deaths.
From the month of May onwards, however, the number of births has been bigger in each separate month than the number of deaths. During that period 6 923 births and 6 428 deaths were registered.
For the first nine months of the year the respective numbers were 12 149 and 12 101, meaning that the number of births exceeded that of deaths by 48.
The Interior Ministry pointed out that its figures just show the number of vital events records made, whereas assessments of population statistics and demographics are offered by Statistics Estonia.
According to the latter, 16 028 people were born and 16 675 died in Estonia during 2008. The country thus had a negative population growth of 647 last year. Among ethnic Estonians natural population growth in 2008 was positive for the first time in 17 years.

Source: Estonian Review

Estonia concluded agreement for the protection and facilitation of investments with Belarus

Foreign Minister Urmas Paet stated that the Foreign Ministry would like to support Estonian entrepreneurs in finding new markets and increase the security of Estonian entrepreneurs. “The agreement concluded between Estonia and Belarus today for the facilitation and reciprocal protection of investments helps to increase the feeling of security for entrepreneurs,” stated the foreign minister. Belarus is one of Estonia’s top 20 trade partners. At the opening of an Estonia-Belarus business forum in Minsk, Foreign Minister Paet said that the interest of Estonian entrepreneurs towards trade with Belarus is rapidly growing.

“The base for future investments and the growth of trade is strong,” asserted Foreign Minister Paet. “There is great potential on the Belarusian market, which is looking for and expecting foreign investors. Estonian entrepreneurs are very interested,” he added.

A 30-member Estonian business delegation is participating in the Estonia-Belarus business forum. Foreign Minister Paet stated that the participation of a 30-member business delegation in his visit pays testament to the fact that Estonian businesses have an active interest in Belarus. “Estonian businessmen can offer Belarus information technology solutions and opportunities for transit co-operation, or contribute to the developing Belarusian construction market and offer various services,” said Paet. In 2005, Estonian export to Belarus totalled 219 million kroons, and in 2008 it was 850 million kroons.

Source: Estonian Review

Don’t say “Baltics”

The following is the public letter that Meelis Mandel, editor in chief of Äripäev, sent to Swedbank and SEB today.

Dear bankers of Swedbank and SEB, 

Both your banks published this week their third quarter results which got major media coverage in the Scandinavian business press and elsewhere. And rightly so, since our view from this side of the Gulf of Finland is that these are the most up-.to-date professional assessment of the economies of Lithuania, Latvia and Estonia.

Let me make one proposal to you in this connection: perhaps in future reports you could report separately about Estonia, Latvia and Lithuania, instead of talking about the overall situation in the Baltics? The reason is that, with the exception of Finns, the rest of the world is still regarding us as one region and you are reinforcing the notion that there is no difference between the three countries.

Whereas, as you well know, albeit small, we are still separate countries and if you look, for instance at change in provisions, you can clearly see that the development in Estonia is different from that of Latvia or Lithuania. I am sure that it would also serve your interests if you were to emphasise it in your communication to foreign investors.

Source: BBN

Swedbank pension funds lost 17,000 clients

The number of Swedbank pension fund clients has decreased by 17,000, compared to the end of previous October. Small pension funds, such as LHV, Ergo and Nordea were most successful with getting new clients, Äripäev reports.

The information is from Friday afternoon while people could change their pension funds until the end of Saturday evening.  Swedbank announced that this was to be expected since they have the biggest market share and Private Debt Fund’s case had also its influence.

Source: BBN

Card maker Trub Baltic sees profit soar 82 pct in 2008

The profit of the bankcard, ID card and driver’s license maker Trub Baltic surged 82% year on year in 2008, reaching 11.2 million kroons (EUR 0.72 mln).
Sales revenue, at close to 78 million kroons, marks a year-on-year growth of 7.8%, the company’s annual report shows.
Trub described the results as excellent, singling out its success in the Estonian public procurement tender for tachograph cards.
The company earned most of the revenue or 59.2 million kroons in Estonia, with Lithuania contributing 7.9 million and Latvia 5.5 million kroons. By areas of operation, sale of ID cards, bankcards, driver’s licenses and tachograph cards generated respectively 30.2 million, 24.5 million, 7.5 million and 9.1 million kroons.
Labour costs inclusive of social taxes and remuneration of board members added up to 5.8 million kroons. The company invested close to three million kroons in equipment last year.

Source: Estonian Review

Ilves to Zatlers: Latvia is Not Alone With Its Worries

“The reforms and budgetary cuts that many countries are addressing, under pressure from and with the support of international organisations, are essential for improving the financial state of these countries, for their own future,” President Toomas Hendrik Ilves said at his meeting with Latvian Head of State Valdis Zatlers.
“It is only the purposeful and decisive action of the government and parliament that can help the societies that have fallen into economic crisis to emerge from this crisis and improve their economic situations. Therefore, it is important that agreements are adhered to – both domestically and internationally,” the Estonian head of state said.
Presidents Ilves and Zatlers recognised that the financial and economic situations in the Baltic countries differ and the problems of the three countries are dissimilar, although the successes and failures of each country affect the reputation of the entire region.
“Of course, while we are responsible primarily for resolving our own problems, we are also responsible for all three Baltic countries,” President Ilves said. “I am sure that Latvia will be able to solve its own problems. I believe in Latvia. Latvia is not alone with its worries. Estonia and Lithuania, as well as the entire European Union, stand by it as firm allies.”
Speaking of the future of the European Union, Presidents Ilves and Zatlers stressed the importance of enacting the Lisbon Treaty, so that we can continue as a more dynamic, more integrated and stronger Europe.

Source: Estonian Review