Estonian minister invites foreign investors to second round

Since transitional period to next growth cycle is the best time for investing, Juhan Parts, Estonian Minister of Economic Affairs invites foreign investors to the second round, aripaev.ee mediates New European Economist.

After couple of years doubled economic growth Estonian economy faces cooling and blooming of domestic economy is ending, writes Parts in the article.

“Still it is great time to invest into next economic growth and positive business cycle in Estonia. Money of EU funds is also available to make transition to next growth cycle more smoother,” said Parts.

He added that more specialized sectors are broadening investors’ possibilities to choose most suitable field.

“Estonians are experts on getting used to new conditions. From Soviet times to choppy ‘90s to technology-oriented situation today, Estonians have always adapted and re-found themselves,” noted Parts.

Since being in transition phase, Estonia is ready to go into next economic blooming.

“This time our IT-sector and manufacturing are dominating. There is no better option to take part of it than now and also benefit from it,”  the minister wrote.

“Look, what we have to offer and don’t wonder what could’ve been,” Parts is inviting foreign investors.

Source: BBN

Construction price index has not changed much

According to Statistics Estonia, in the 3rd quarter of 2008 the percentage change of the construction price index was 0.4% compared to the 2nd quarter, and 3.1% compared to the 3rd quarter of the previous year.

According to Statistics Estonia, in the 3rd quarter of 2008 the percentage change of the construction price index was 0.4% compared to the 2nd quarter, and 3.1% compared to the 3rd quarter of the previous year.

In the 3rd quarter compared to the previous quarter as well as to the 3rd quarter of the previous year, the construction price index was primarily influenced by the increase in the labour costs and by more expensive building machines.

In the 3rd quarter of 2008 the percentage change in the repair and reconstruction work price index was 0.3% compared to the 2nd quarter and 3.6% compared to the 3rd quarter of the previous year.

The calculation of the construction price index covers four groups of buildings — detached houses, blocks of flats, industrial buildings and office buildings, as well as office buildings covered by the repair and reconstruction work price index. The construction price index expresses the change in the expenditures on construction taking into consideration the price changes of basic inputs: labour force, building materials and building machines.

Change in the construction price index, 3rd quarter 2008

  2nd quarter 2008 –
3rd quarter 2008, %
3rd quarter 2007 –
3rd quarter 2008, %
TOTAL 0.4 3.1
labour force 0.1 3.0
building machines 0.4 4.8
building materials 0.6 3.0
Index of detached houses 0.6 3.8
Index of blocks of flats 0.5 3.1
Index of industrial buildings 0.5 3.4
Index of office buildings 0.2 2.7

Change in the repair and reconstruction work price index

  2nd quarter 2008 –
3rd quarter 2008, %
3rd quarter 2007 –
3rd quarter 2008, %
TOTAL 0.3 3.6
labour force 0.2 3.2
building machines 0.4 2.9
building materials 0.4 3.9

Source: Statistics Estonia

Consumer price index 11percent higher than last year

According to Statistics Estonia, in the 3rd quarter of 2008 the percentage change of the consumer price index was 1.6% compared to the 2nd quarter and 10.9% compared to the 3rd quarter of the previous year.

In the 3rd quarter of 2008 compared to the previous quarter, the consumer price index was mainly influenced by the price increase of alcoholic beverages and tobacco, as well as by the price decrease of fresh vegetables.

In the 3rd quarter compared to the same quarter of the previous year, the prices of goods increased by 10.7%, of which the prices of food by 16.8% and the prices of manufactured goods by 5.9%. The annual increase of prices of services was 11.2%. The index was mainly influenced by the price increase of food and motor fuel, by the increase in the expenditures on housing, as well as by the increase in the prices of alcoholic beverages and tobacco.

Change of the consumer price index by commodity groups, 3rd quarter 2008

Commodity group 2nd quarter 2008 –
3rd quarter 2008, %
3rd quarter 2007 –
3rd quarter 2008, %
TOTAL 1.6 10.9
Food and non-alcoholic beverages -0.7 15.7
Alcoholic beverages and tobacco 11.5 19.7
Clothing and footwear -0.6 2.8
Housing 2.3 12.8
Household goods 1.1 4.3
Health 2.1 8.0
Transport 1.4 13.8
Communications -0.3 -1.0
Recreation and culture 0.9 2.6
Education 1.5 8.6
Hotels, cafés and restaurants 2,7 13.9
Miscellaneous goods and services 0.8 7.8
Source: Statistics Estonia

No change in producer price index September compared to August

According to Statistics Estonia, in September 2008 the percentage change in the producer price index was 0.0% compared to August and 6.3% compared to September of the previous year.

In September compared to the previous month the producer price index was mainly influenced by the increase in prices in the manufacture of building materials and in the manufacture of chemicals and chemical products and by the decrease in prices of food products and in the manufacture of rubber and plastic products. Compared to September of the previous year the prices increased most in energy supply.

Change in the producer price index by economic activity, September 2008

Economic activity August 2008 –
September 2008, %
September 2007 –
September 2008, %
TOTAL 0.0 6.3
Energy supply 0.4 19.1
Mining 0.0 12.6
Manufacturing 0.0 5.0

In September 2008 the percentage change in the export price index was 0.1% compared to August and 3.0% compared to September of the previous year.

In September compared to the previous month the export price index was mainly influenced by the increase in prices in the extraction of peat, in the manufacture of precision instruments, machinery and equipment, in the manufacture of chemicals and chemical products and by the decrease in prices in the manufacture of food products and in the manufacture of rubber and plastic products.

In September 2008 the percentage change in the import price index was 0.3% compared to August and 8.6% compared to September of the previous year.

In September compared to the previous month the import price index was mainly influenced by the increase in prices of wearing apparel, footwear, paper and paper products and electrical machinery and apparatus and by the decrease in prices of mineral fuels, agricultural products and metals.

Source: Statistics Estonia

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