Estonia catching up with Finland in exports per capita

A survey made by Swedbank shows that Estonia has closed the gap with Scandinavian countries in terms of exports per capita, writes Äripäev.

Robert Kitt, head of Swedbank’s corporate banking unit, said that when the gap between Finland and Estonia was 20% last year in per-capita exports, the figure today is 8% and is likely to exceed the Finnish level next year.

Read more from BBN

In March the trade was smaller than in the previous year

According to Statistics Estonia, in March 2013, both exports and imports of goods decreased by 6% at current prices compared to March of the previous year. Exports and imports decreased for two months in succession, in February the trade decreased by 2% in both flows compared to the same month of the previous year.

In March, exports from Estonia amounted to 1.01 billion euros and imports to Estonia to 1.12 billion euros at current prices. The trade deficit was 116 million euros and it slightly decreased compared to March 2012.

The top destination countries of Estonia’s exports were Sweden (17% of Estonia’s total exports), followed by Finland (15%) and Latvia (11%). Compared to March 2012, the decrease in total exports was mostly influenced by the decrease in the dispatches to Sweden and Russia (down by 7% and 9%, respectively). Exports to Latvia and Belgium increased significantly (by 31% and 101%, respectively). Electrical equipment and wood and products thereof were the main commodities exported to Sweden and Finland, fuels and vehicles and parts thereof to Latvia.

The main countries of consignment were Finland (14% of Estonia’s total imports), Sweden, Latvia and Germany (9% from each). Compared to March of the previous year, arrivals of goods from China and Sweden increased the most (by 46% and 12%, respectively). At the same time, arrivals of goods from Russia and Finland decreased (by 27% and 9%, respectively). Fuels were the main commodities imported from Finland and Latvia, electrical equipment from Sweden and mechanical equipment from Germany.

In Estonia’s exports in March, the biggest share was held by machinery and equipment (28% of Estonia’s total exports), followed by mineral products (incl. petrol, shale oils and electricity) (11%), wood and products thereof and agricultural products and food preparations (both 9%). The decrease in exports compared to March 2012 was mainly influenced by the decrease in the dispatches of mineral fuels (down by 38%). At the same time the increase was mentioned in the dispatches of the raw materials and products of chemical industry and wood and products thereof (the growth rate 31% and 12%, respectively).

In March the biggest share of Estonia’s imports was held by machinery and equipment (28% of Estonia’s total imports), followed by mineral products (14%) and agricultural products and food preparations (10%). The decrease in total imports was mostly influenced by the decline in the arrivals of mineral products and transport equipment (down by 34% and 14%, respectively). The arrivals of raw materials and products of chemical industry increased (9%).

Compared to February 2013, both exports and imports increased by 5%. The number of working days was equal in both months.

In the 1st quarter of 2013, exports increased by 3% and imports by 2% compared to the same period of 2012. The slight increase in exports was mainly influenced by the increase in the dispatches of ships and boats (growth rate 157%). The increase in imports was also influenced by the increase of imports of ships and boats, but also by the increase of the arrivals of electrical equipment.

According to Estonian Institute of Economic Research, the economic sentiment indicator, which reflects Estonia’s entrepreneurs’ and consumers’ confidence, has shown a decrease in March and April. Among neighbouring countries, the index was in the rising trend only in Lithuania.

Read more from Statistics Estonia

73% of the manufacturing production is sold on the external market

According to Statistics Estonia, in March 2013, the production of industrial enterprises increased by 7% compared to March of the previous year. The growth in the production was most of all influenced by the manufacturing of electronic products and electricity.

In March the production in manufacturing increased by 5% compared to the same month of the previous year. Among the branches of industry holding larger shares, the production grew also in the manufacture of chemical and metal products, building materials and machinery and equipment. The volume of production fell in the manufacture of food products, electrical equipment and furniture.

In March, 73% of the whole production of manufacturing was sold on the external market. According to unadjusted data, the export sales of the manufacturing production grew 2% compared to March 2012, domestic sales decreased 2%.

In March 2013 compared to February, the seasonally adjusted total industrial production increased 4%, the production in manufacturing grew 2%.

Compared to March 2012, the production of electricity increased by 34% and the production of heat by 15%. The growth of electricity production was mainly caused by the increase in exports compared to March of the previous year.

Read more from Statistics Estonia

Estonian, Russian PMs avoided thorny issues

Estonian Prime Minister Andrus Ansip and his Russian counterpart Dmitri Medvedev made sure that no thorny political topics were raised during their meeting in St Petersburg on Friday, writes Äripäev.

Commenting the meeting that was held in the framework of the Baltic Sea States Summit, Ansip said that he and Medvedev discussed possibilities to remove obstacles from bilateral trade.

“We both stated that our trade has grown notably in recent years. While in 2000, Russia accounted for 2.4% of Estonia’s total exports, the figure is now between 12 and 16%.” Ansip said that Medvedev also mentioned rapid growth in tourism of Russians into Estonia which is growing between 30 and 50% a year.

Both found that the current border crossing system was not effective for promoting economic and tourism relations.

Speaking of bilateral relations, Ansip said that economic relations between Estonia and Russia are now the best in the last twenty years.

Read more from BBN (Baltic Business News ) here

Last year exports grew moderately

According to Statistics Estonia, in 2012 exports of goods increased by 4% and imports by 9% compared to 2011. In 2012, the annual growth of exports and imports was slower than in the previous year when both exports and imports grew by 37%.

In 2012, exports of goods at current prices totalled 12.6 billion euros and imports to Estonia totalled 13.8 billion euros. Estonia’s trade deficit amounted to 1.2 billion euros, which is two times bigger than in 2011 when the trade deficit was 0.66 billion euros. The biggest trade surplus was registered in Estonia’s trade with Sweden and Russia (exports to both countries exceeded imports by 0.6 billion euros). The biggest deficit was registered in trade with Germany and Lithuania.

In 2012, the main countries of destination were Sweden (16% of Estonia’s total exports), Finland (15%) and Russia (12%). The biggest increase was registered in exports to Russia and Latvia (up by 16% and 15%, respectively), while exports to USA decreased (down by 22%). Electrical equipment and fuels were mainly exported to Sweden, electrical equipment and furniture to Finland, and mechanical and electrical equipment to Russia.

The main countries of consignment were Finland (14% of Estonia’s total imports), Germany and Sweden (10% each). In 2012 compared to 2011, imports from Finland and Lithuania increased the most (up by 25% and 14%, respectively). Fuels and electrical equipment were mostly imported from Finland, transport and mechanical equipment from Germany and electrical equipment from Sweden.

In 2012, the first place in exports was held by machinery and equipment (29% of Estonia’s total exports), followed by mineral fuels incl. motor spirits, shale oil and electricity (15%), and agricultural products and food preparations (9%). The turnover of all commodity sections (excl. mineral fuels) increased compared to 2011. The growth in Estonia’s exports was mostly influenced by the dispatches of machinery and equipment (growth rate 9% or 301 million euros). There was also a significant increase in dispatches of agricultural products and food preparations (up by 15% or 148 million euros). At the same time, dispatches of mineral products decreased compared to 2011 (down by 9%).

In 2012, the first place in imports was also held by machinery and equipment (29% of total imports), followed by mineral products (15%) and agricultural products and food preparations (10%). The total imports of Estonia were mostly influenced by an increase in the arrivals of machinery and transport equipment (up by 13% and 21%, respectively). At the same time, the arrivals of mineral products decreased (down by 7%).

In December 2012, the value of exports of goods was 0.9 billion euros and the value of imports was 1.1 billion euros. Compared to December 2011, exports decreased by 5%, but imports increased by 9%.

In December, exports decreased by 23% and imports by 5% compared to November 2012. A decline in exports was recorded in all the main commodity sections (excl. mineral fuels). The biggest monthly decrease occurred in the dispatches of machinery and equipment and metals and products thereof. In most commodity sections, there was also a decline in arrivals. As in exports, the biggest decline was registered in the arrivals of machinery and equipment and metals and products thereof.

In 2012, the annual rise was 2% for export prices and 4% for import prices (for comparison, in 2011 the annual rise was 10% and 11%, respectively).

Read more from Statistics Estonia

In October the foreign trade deficit increased significantly

According to Statistics Estonia, in October 2012, exports from Estonia amounted to 1.1 billion euros and imports to Estonia to 1.3 billion euros at current prices. Both, the turnover of exports as well as imports, were record high, at the same time the trade deficit increased.

In October 2012 compared to October of the previous year, exports of goods from Estonia increased by 10% and imports to Estonia by 21%. Due to the faster growth in imports than in exports, the trade deficit also increased significantly. The trade deficit was registered as 152 million euros which is nearly five times bigger than in October of the previous year. In monthly basis, Estonia’s trade deficit was last bigger in March 2010, when it was 179 million euros.

In October, in Estonia’s exports the biggest share was held by machinery and equipment (28% of Estonia’s total exports), followed by agricultural products and food preparations (16%) and mineral fuels (incl. motor spirits, shale oils and electricity – 10%). The increase in exports compared to October 2011 was mainly influenced by the increase in the dispatches of machinery and equipment (up by 28%). Dispatches of agricultural products and food preparations also increased significantly (up by 62%, mainly influenced by cereals, incl. barley and wheat). At the same time, exports of mineral fuels decreased (down by 26%).

In October the biggest share of Estonia’s imports was held by machinery and equipment (33% of Estonia’s total imports), followed by mineral fuels (11%) and agricultural products and food preparations (10%). There was a significant increase in the arrivals of machinery and equipment (up by 51%) compared to October of the previous year. At the same time the arrivals of mineral fuels decreased (down by 22%).

The biggest share of commodities was exported to Sweden (16% of Estonia’s total exports), followed by Finland (15%) and Russia (11%). Compared to October 2011, the increase in total exports was mostly influenced by the increase in the dispatches to Sweden and Germany (up by 37% and 50%, respectively). At the same time, exports to the Netherlands and USA decreased. Electrical equipment and wood were the main commodities exported to Sweden; electrical equipment and furniture to Finland and mechanical equipment and organic chemicals to Russia. Exports to Germany increased due to the increase in the dispatches of cereals.

The main countries of consignment were Finland (13% of Estonia’s total imports), Sweden (11%) and Germany (10%). The increase in the total imports was mostly influenced by the increase in the arrivals from Norway and Sweden (up by 9 times and 43%, respectively). At the same time, imports from Russia decreased by nearly a third. Fuels and electrical equipment were the main commodities imported from Finland, electrical equipment and transport equipment from Sweden and transport equipment and mechanical equipment from Germany. Imports from Norway increased mainly due to the increase in the arrivals of electric conductors.

Compared to September 2012, exports increased by 2% and imports by 12%. Exports increased due to the increase in the dispatches of agricultural products and food preparations (incl. cereals), and imports due to the increase in the arrivals of machinery and equipment.

The economic sentiment indicator, which reflects Estonia’s entrepreneurs’ and consumers’ confidence, deteriorated in October as well as in November. According to Eurostat data, in November the same indicator deteriorated also in Sweden, but improved in Finland and Germany.

Estonia’s trade, 2010–2012

Read more from Statistics Estonia

Estonia expects Russia to fulfil the principles of WTO

During the discussion on European Union-Russia trade relations at a meeting of the European Union foreign trade ministers in Brussels, Foreign Minister Urmas Paet said that in addition to the positive steps that have been taken, Estonia is expecting Russia to fulfil the principles of the World Trade Organisation (WTO).

According to Foreign Minister Paet, Estonia is affected the most by the ban on live animal imports from the European Union into Russia. “One notices that Russia is trying to restrict the import of those goods whose import tariffs were significantly lowered when Russia joined the WTO,” he added.

Paet said that high import duties on used cars and customs rates that are higher than the agreed amount for some paper goods are not in accordance with the obligations that Russia accepted. “The European Union is working towards solutions and we hope that Russia will abolish trade restrictions that are against WTO regulations,” he said.

Estonia would also like to discuss the fulfilment of WTO regulations at the European Union-Russia summit in December. “A common understanding of WTO requirements and their fulfilment is essential to both sides, and problems in trade relations between the European Union and Russia must be resolved,” emphasised the Estonian foreign minister. 

Another trade-related matter on the agenda of the European Union-Russia summit is the current status of negotiations on the trade and investments chapter of the EU-Russia framework agreement. “The EU would like for the framework agreement to be as comprehensive and detailed as possible, and in moving forward we expect both the trade and investment sectors to be fully represented,” Paet stated.

Source: Estonian Review

Free trade agreements with Singapore and Canada

At a meeting of the European Union foreign trade ministers in Brussels, Foreign Minister Urmas Paet said that he feels it is important that the European Union conclude free trade agreements with important trade partners.

Paet stated that the European Union’s negotiations with Singapore are in the final stages and the conclusion of the agreement will improve the competitiveness of EU businesses and investors in Singapore as well as in Asia as a whole. “For Estonia it is most important that we get better access to Singapore’s services market, especially in the area of information technology and e-services but also in the areas of logistics and transportation and financial services,” Paet said.

Estonia also supports quickly wrapping up negotiations for a free trade agreement with Canada. “We hope that this can happen before the end of the year,” the foreign minister noted.

The foreign trade ministers also discussed opening free trade agreement negotiations with Japan and Morocco. “Japan is a major player in global trade and the market there is very large. Japan is also an important strategic and trade partner of the European Union,” Paet stated. “Estonia would like for co-operation between Japan and the EU to be as comprehensive as possible in order to create a long-term, well-functioning strategic partnership,” he added.

Preparations for free trade agreement talks with countries along the southern shore of the Mediterranean Sea have developed the furthest with Morocco. “Promoting economic relations is an important element in guiding the EU’s southern neighbours toward reforms, and starting negotiations with Morocco will hopefully give a positive signal to others as well,” stated the Estonian foreign minister.

Source: Estonian Review

Finland is Estonia’s biggest trade partner

At today’s Estonian-Finnish forum entitled “Together We Are Unique”, which was attended by the prime ministers of both countries, the Estonian ministers for economic affairs and communications and education and research and entrepreneurs from both countries, the participants agreed that Estonian and Finnish companies are working very closely together and that the economic ties between the two countries are constantly growing.

Finland remains the second largest direct investor in Estonia after Sweden. “In the first six months of 2012, 3.1 billion euros in direct investment had been made in Estonia from Finland, which accounts for 23% of all investments,” said Prime Minister Ansip, speaking at the forum. He said he was pleased that trade in goods between the two countries is continuing to grow. Based on statistics for the first half of 2012, Finland remains Estonia’s biggest trade partner, its biggest import partner and its second biggest export partner. Compared to the same period in 2011, imports have grown by 30% and exports by 4%.

The close ties between the neighbouring countries are also reflected in the fact that 4 700 Finnish companies are registered in Estonia, 500 of which were started in 2011. Estonia is also the number one tourist destination for Finns. “These figures might make it seem as though relations between our countries couldn’t be better, but there is still room for improvement in joint research and development and in fostering the internal market,” Ansip added.

At the end of 2011 there were 1 533 Estonian companies operating in Finland, mostly in the fields of construction and trade. Businesses from the two countries are most commonly linked through subcontracting and mediation, but more and more companies are working together on an equal footing in the fields of energy, information technology, shipbuilding and machinery construction and design and product development.

51 Estonian subsidiaries are also registered in Finland, with a total of 2031 employees. The most widely recognised include Tallink AS (Tallink Silja OY), AS Tavid (Tavex OY), AS Harju Elekter (Satmatic OY), Uptime, Bigbank, LHV, BLRT, Eesti Energia (Solidus OY) and Rand&Tuulberg.

Source: Estonian Review

Economic growth accelerated in the 3rd quarter

According to flash estimates of Statistics Estonia, the gross domestic product (GDP) of Estonia increased by 3.4% in the 3rd quarter of 2012 compared to the same quarter of the previous year.

The seasonally and working-day adjusted GDP growth accelerated to 1.7% compared to the previous quarter.

The economic activities in the domestic market mainly contributed to the GDP growth. Construction, information and communication activities contributed the most successively to the growth already for the fifth quarter in succession. Trade, transport, professional, technical and administrative and support service activities contributed moderately to the economic growth.

The economic growth in Estonia depends considerably on foreign demand, whereas the main exporters are manufacturing enterprises. According to the preliminary calculations, the contribution of manufacturing, as the biggest economic activity, was continually negative to the economic growth. At the same time, the real growth of export of goods of the total economy accelerated to 6%, whereas import accelerated to 9%.

GDP, growth of the export and import of goods compared to the same quarter of the previous year, 1st quarter 2008 – 3rd quarter 2012

The second estimate of the GDP of the 3rd quarter of 2012 will be published by Statistics Estonia on 10th December.

Source: Statistics Estonia