Logging in Estonia grows 43 pct in 2010

The volume of logging in Estonian forests according to cutting documents soared 43% last year to 10.47 million cubic meters, and the area of cutting increased by 27% to 131 128 hectares, data of the national statistical office show.

Last year’s cutting volume is the largest in the last two decades. In the 2000-2010 period the volumes of logging according to cutting documents fluctuated between 5.1 million and 7.4 million cubic meters.

In state-owned forests the volume of cutting increased by 11% to 3.34 million cubic meters and in privately-owned forests, by 64% to 6.99 million cubic meters. Clear cutting amounted to 7.92 million cubic meters and improvement cutting, to 2.17 million cubic meters.

Regeneration was carried out on 8 821 hectares, including reforestation of 6 366 hectares. Spruce was planted on 4 645 hectares, pine on 1 186 hectares and birch on 503 hectares of forestland.

Source: Estonian Review

Economic growth accelerated in the 1st quarter

According to the second estimates of Statistics Estonia, the gross domestic product (GDP) of Estonia increased by 8.5% in the 1st quarter of 2011 compared to the same quarter in the previous year. The GDP growth has gradually accelerated since the 2nd quarter of the previous year.

Compared to the previous quarter, the seasonally and working-day adjusted GDP grew by 2.4%.

In the 1st quarter, the GDP at current prices was 3.71 billion euros (58.04 billion kroons).

The fast growth of the value added of manufacturing (29%) contributed to the GDP the most. Contribution of the manufacturing to the GDP growth was 3.9 percentage points. Manufacture of radio, TV and communication equipment and apparatus had the biggest impact on the growth of the value added of this economic activity. Manufacture of wooden, chemical and metal products had also bigger influence on the value added. The value added of manufacturing grew mainly with the support of vigorous exports. At the same time, the GDP growth became more even in the 1st quarter on account of the increase of the impact of other economic activities. In addition, transport, storage and communication, other business activities and construction had bigger contribution to the GDP growth. In the 1st quarter, the value added of construction turned to the growth after the two and a half years’ decrease. Construction of buildings and structures grew fast and the value added of construction increased 23% compared to the same quarter of the previous year. The fast growth of the value added of construction also proceeded from the low comparison basis of the previous year.

The GDP growth was substantially influenced by the increase in the receipts of the value added tax and excise taxes

The value added of forestry, fishing, electricity, gas and water supply and financial intermediation decreased. Deceleration of the growth of exports of electric energy contributed to the decrease in the value added of electricity, gas and water supply. The value added of financial intermediation fell due to the decrease in the insurance output and increase in insurance claims. In the 1st quarter the share of the economic activities with decreased value added was 12% (28% in the 4th quarter).

Growth of the value added of the economic activities, 1st quarter 2011

Diagram: Growth of the value added of the economic activities, 1st quarter 2011

In the 1st quarter the number of persons employed and hours worked increased. This resulted in the deceleration of labour productivity of the total economy per hour worked to 0.7% compared to the same quarter of the previous year. Labour productivity per hour worked decelerated for the third quarter in succession. The productivity has been calculated by the resident production units (domestic concept) and by seasonally and working-day adjusted figures. The decrease of labour costs for the production of the GDP has decelerated. In the 1st quarter unit labour costs decreased by a percentage compared to the same quarter of the previous year.

The growth of the domestic demand accelerated to 13%, primarily due to the increase of inventories. In addition, the domestic demand was contributed by the increase in gross fixed capital formation and household final consumption expenditures (12% and 5%, respectively). The increase of the gross fixed capital formation was influenced mostly by the investments in transport equipment by business sector. The increase of the household final consumption expenditures was influenced mainly by the increase of the housing and transport expenditures.

In the 1st quarter, both export and import of goods and services increased by 39% in real terms. Export of goods grew by 53% and import of goods by 45%. The exports and imports of radio, TV and communication equipment and apparatus had the biggest influence on the growth of export and import. Although export of goods and services is continually bigger than imports in Estonia, the gap diminished substantially in the 1st quarter. The share of net exports to the GDP was 1.3%. In the 4th quarter of the previous year the respective figure was 7.4%.

On 8 September 2011, Statistics Estonia will release the time series of the revised GDP since 2002. For additional information about revisions please see http://www.stat.ee/dokumendid/53247

Source: Statitiscs Estonia

New trade record was set in April

According to Statistics Estonia, in April 2011, the exports of goods from Estonia amounted to 1.1 billion euros and imports to Estonia to 1.2 billion euros at current prices. Exports as well as imports of goods exceeded the highest turnover so far or the turnover of March this year. The growth in trade was significantly influenced by the machinery and equipment and mineral products.

In April 2011, exports grew by 60% and imports by 68% compared to the same month of the previous year. Due to a faster growth in imports than in exports, the foreign trade deficit also increased. In April 2010, the trade deficit was 17 million euros, but in April this year the trade deficit was 87 million euros.

In Estonia’s exports in April the biggest shares were held by machinery and equipment (27% of Estonia’s total exports), mineral products (incl. motor spirits, fuel oils and electricity) – 23% and metals and products thereof (9%). Compared to April 2010, exports of machinery and equipment and mineral products increased the most, both 2.3 times.

In April the biggest shares of Estonia’s imports were held by mineral products (27% of Estonia’s total imports), machinery and equipment (25%), and agricultural products and food preparations (8%). Compared to April 2010, arrivals of mineral products and machinery and equipment increased the most (2.7 and 2.1 times, respectively). Imports of transport equipment also increased significantly (79%).

The first place among destination countries of exports was held by Sweden (18% of Estonia’s total exports), followed by Finland (14%) and Russia (8%). Compared to April 2010, exports increased the most to Sweden and France (by 102 and 56 million euros, respectively). Electrical equipment and fuels were mainly exported to Sweden, electrical equipment and furniture to Finland and mechanical and electrical equipment to Russia.

For the second month in succession, the largest amounts of goods were imported from Russia (16% of Estonia’s total imports in April), followed by Latvia and Sweden (12% and 11%, respectively). During the year, arrivals of goods from Russia and Sweden have increased the most (122 and 58 million euros, respectively). From Russia, mainly fuels and wood and products thereof were imported, from Latvia – fuels and electrical equipment, and from Sweden – electrical equipment and vehicles.

In April compared to March, exports increased by 0.1% and imports 0.2%.

Estonia’s trade by months, 2008–2011

Diagram: Estonia’s trade by months, 2008–2011

Estonia’s foreign trade, January–April, 2010–2011
Month Exports, million euros Imports, million euros Balance, million euros
2010 2011 change, % 2010 2011 change, % 2010 2011
January 519.5 818.3 58 543.3 897.8 65 -23.8 -79.5
February 628.7 842.8 34 608.3 889.7 46 20.4 -46.9
March 628.6 1 087.1 73 802.3 1 173.4 46 -173.7 -86.3
April 680.7 1 087.9 60 697.9 1 175.2 68 -17.2 -87.3

 

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