Profit of the business sector decreased in 2015

According to the preliminary data of Statistics Estonia, in 2015 the total profit of the business sector was 3.0 billion euros, which was 8% less than the year before. The increase in the business sector’s total profit turned to decline after five years of growth.

Compared to 2014, the total profit decreased in almost all economic activities. The biggest contribution to the total profit was made by real estate activities. The growth in the profit of the business sector was negatively influenced mostly by manufacturing and energy enterprises. The profit of manufacturing decreased 16% compared to 2014, mainly due to the decreased profits in the manufacture of electronics and fuel oil products.

In 2015, enterprises sold goods and services for 49.1 billion euros, which was 3% less than the year before. The turnover of trade enterprises, which have the biggest share in the total turnover of the business sector, decreased 3%, influenced mostly by a decrease in the turnover of wholesale trade. At the same time, the turnover of retail trade and motor trade continued to grow. The turnover of manufacturing enterprises stayed the same as the year before.

Compared to 2014, the total costs of enterprises decreased 2%, while personnel expenses increased 7%. Both the number of persons employed and the number of hours worked increased 2%. The labour productivity of the business sector on the basis of value added amounted to an average of 22,100 euros per person employed in a year and stayed on the same level as in 2014.

The investment activity of enterprises continued to decrease for the third year in a row. In 2015, enterprises invested 2.3 billion euros, which is 4% less than the year before. Similarly to 2014, the largest investments were made mainly in equipment and machinery and in the construction and alteration of buildings. The main investors were manufacturing, energy and trade enterprises with about a half of the total investments of enterprises. Compared to 2014, the investments in acquisition of buildings and in equipment and machinery increased. Other investments decreased, with the biggest decrease registered in investments in land.

In the 4th quarter of 2015, enterprises sold goods and services for 12.7 billion euros, which was 2% less than in the same period of 2014. In the 4th quarter of 2015, enterprises invested 759 million euros, i.e. the same as in the 4th quarter of 2014.Diagram: Total profit of the business sector, 2002–2015

Source: Statistics Estonia