Estonian trade increased after three years of decline

According to Statistics Estonia, in 2016, the exports and imports of goods increased by 3% each compared to 2015. The last time trade grew in comparison of years was in 2012.

In 2016, exports of goods from Estonia amounted to 11.9 billion euros and imports to Estonia to 13.5 billion euros at current prices. The trade deficit in 2016 was 1.6 billion euros, the deficit increased by nearly 73 million euros compared to 2015. The largest surplus was in the trade in wood and articles of wood and miscellaneous manufactured articles (incl. furniture and prefabricated buildings of wood), the largest deficit was registered in the trade in transport equipment and in raw materials and products of chemical industry.

Similarly to previous years, electrical equipment was exported the most, accounting for 22% of Estonia’s total exports in 2016. This was followed by the exports of wood and articles of wood (10%), agricultural products and food preparations (9%) and miscellaneous manufactured articles (9%). The increase in exports was mostly impacted by a rise in the exports of mechanical machinery, electrical equipment and wood and articles of wood. The biggest decrease in exports in 2016 year was recorded in mineral products and agricultural products and food preparations.

The top destination country of Estonia’s exports in 2016 was Sweden (18% of Estonia’s total exports). Finland (16%) was second and Latvia (9%) third. The biggest increase occurred in exports to Mexico, Germany and Finland. Exports to Latvia, Sweden and the USA decreased the most in 2016.

The share of goods of Estonian origin in total exports was 72% in 2016. In the exports of goods of Estonian origin, the largest increase was in the exports of mineral products, wood and articles of wood and electrical equipment. The exports of agricultural products and food preparations dropped significantly.

The main destination countries of goods of Estonian origin are Sweden, Finland and Germany. The biggest increase in the exports of goods of Estonian origin was in the exports to Mexico and Germany and the biggest decrease in the exports to Sweden and Russia.

In 2016, the main commodity imported to Estonia was electrical equipment; its share amounted to 18% of Estonia’s total imports. The second and third places were held by transport equipment (11%) and agricultural products and food preparations (11%). In a year, the imports of transport equipment and base metals and articles of base metal increased the most. The imports of mineral products decreased.

The main countries of consignment in 2016 were Finland (13% of Estonia’s total imports), Germany (11%), and Lithuania (9%). The biggest increase occurred in imports from the Netherlands, Hungary and France. The largest decrease was registered in imports from Finland and Russia.

Estonia exported goods to 179 countries and imported goods from 144 countries. A positive foreign trade balance was recorded in the case of 97 countries. The biggest surplus (1 billion euros) was recorded in trade with Sweden, followed by Norway, Mexico and Finland. The biggest deficit was recorded in trade with Germany, Poland and Lithuania.

In 2016, the share of European Union countries in Estonia’s total exports was 74% and total imports 82%. The trade deficit with other European Union countries totalled 2.4 billion euros, which is 219 million euros more than in 2015. Exports to EU countries increased by 85 million euros and imports by 303 million euros. In trade with non-EU countries, exports increased by 232 million and imports by 86 million euros.

In 2016 compared to 2015, export prices decreased by 1% and import prices by 2%.

In December 2016, exports of goods from Estonia amounted to 1.0 billion euros and imports to Estonia to 1.2 billion euros. Compared to December 2015, exports increased 10% and imports 8%.

Read more from Statistics Estonia

Exports of both goods and services increased in December 2016

The flash estimate1 put the Estonian current account at 65 million euros in surplus in December 2016. The surplus on the goods and services account doubled over the year to 74 million euros. The growth of 6% in goods exports at the end of the year was faster than the 5% in imports, so the deficit on the goods account narrowed to 112 million euros. The surplus on the services account was 186 million euros, which was 32 million euros more than at the same time a year earlier. Services exports increased by 11% because of growth in travel services and other services, while imports of services increased by only 6%. The net outflow on the primary and secondary income accounts totalled 9 million euros.

The current and capital accounts were in surplus by a total of 58 million euros in December. This meant that the Estonian economy has been a net lender to the rest of the world in the past nine months.

1 The quarterly balance of payments is compiled from a combined system of representative primary data sources, including surveys of companies, while the monthly balance of payments draws from a considerably smaller database. Although the monthly report uses as much data available for the month reported as possible, including administrative data sources and reports on international payments, it is subjective to a certain degree, which is why it is called an estimate. Once the quarterly balance of payments is released, the monthly balances of payments are adjusted accordingly. For more on the principles used in compiling the flash estimate, see http://statistika.eestipank.ee/failid/mbo/kiir_mb_eng.html

Eesti Pank publishes the flash estimate of the balance of payments monthly for the last month but one. Eesti Pank will publish the balance of payments for the fourth quarter of 2016 on 9 March 2017.

Source: Bank of Estonia (see better graph here)

In October exports from Estonia amounted to 1 bEUR

According to Statistics Estonia, in October 2016, the exports of goods increased by 2% and imports by 3% compared to October of the previous year. Compared to October 2015, the exports of goods of Estonian origin increased by 3% and re-exports, i.e. the exportation of goods imported from a foreign country, stayed at the same level.

In October, exports from Estonia amounted to 1.0 billion euros and imports to Estonia to 1.2 billion euros at current prices. The trade deficit was 151 million euros (in October 2015, it was 129 million euros).

The top destination country of Estonia’s exports in October was Sweden (16% of Estonia’s total exports), followed by Finland (16%) and Latvia (9%). The biggest increase occurred in exports to Mexico and Germany (up by 15 million euros to both), mainly due to increased exports of electrical equipment. Exports to Sweden and Latvia decreased the most.

The biggest share in exports was held by electrical equipment, followed by wood and articles of wood, agricultural products and food preparations. The increase in exports was influenced by the exports of optical, measuring, checking and medical instruments (incl. medical apparatus, measuring instruments, thermostats), electrical equipment (incl. communication equipment) and mineral products (incl. motor spirit, shale oil). There was a decrease in the exports of agricultural products and food preparations and transport equipment.

The share of goods of Estonian origin in total exports was 72% in October. The exports of goods of Estonian origin were influenced the most by a rise in the exports of mineral products (incl. shale oil, electricity) and electrical equipment. Among goods of Estonian origin, the biggest decrease occurred in the exports of agricultural products and food preparations due to decreased exports of cereals and fish, whereas the export of dried peas increased. The biggest share of goods of Estonian origin are exported to Sweden, Finland and Germany. The biggest increase in the exports of goods of Estonian origin was in the exports to Mexico, Togo and Rumania.

The main countries of consignment in October were Finland (12% of Estonia’s total imports), Germany (11%), and the Netherlands (10%). The biggest increase was in imports from the Netherlands, which doubled. Compared to October 2015, more electrical equipment and transport equipment was imported from the Netherlands. The greatest decrease occurred in imports from Finland.

In October, the main commodities imported to Estonia were electrical equipment, transport equipment, agricultural products and food preparations. The growth in imports was influenced the most by the imports of transport equipment. The biggest fall occurred in the imports of mineral products.

In October 2016, export prices increased by 3% and import prices increased by 1%.

Compared to September 2016, exports in October decreased 7% and imports stayed at the same level.

Diagram: Estonia’s foreign trade by month, 2015–2016

Read more from Statistics Estonia

In September, exports grew faster than imports

According to Statistics Estonia, in September 2016, the exports of goods increased by 13% and imports by 2% compared to September of the previous year. In the third quarter as a whole exports grew 7%.

In September, exports from Estonia amounted to 1.1 billion euros and imports to Estonia to 1.2 billion euros at current prices. The trade deficit was 62 million euros (in September 2015, it was 161 million euros).

The top destination country of Estonia’s exports in September was Sweden (15% of Estonia’s total exports), followed by Finland (15%) and Latvia (10%). The biggest increase occurred in exports to the Netherlands, Mexico and Germany (up by 33 million, 26 million and 16 million euros, respectively). Compared to September 2015, more mineral products were exported to the Netherlands and more electrical equipment to Mexico and Germany. Exports to the main destination country Sweden decreased by 13 million euros.

The biggest share in Estonia’s exports in September was held by electrical equipment, followed by mineral products, agricultural products and food preparations and miscellaneous manufactured articles. The increase in exports was greatly influenced by the exports of mineral products (incl. motor spirits, shale oil), electrical equipment (incl. communication equipment) and mechanical appliances (incl. industrial equipment). There was a decrease in the exports of agricultural products and food preparations.

The share of goods of Estonian origin in total exports was 71% in September. Compared to September 2015, the exports of goods of Estonian origin increased by a tenth and re-exports, i.e. the exportation of goods imported from a foreign country, by a fifth. The exports of goods of Estonian origin were influenced the most by a rise in the exports of mineral products, electrical equipment and mechanical appliances. Among goods of Estonian origin, the biggest decrease occurred in the exports of agricultural products and food preparations.

The main countries of consignment in September were Finland (13% of Estonia’s total imports), Germany (12%), Lithuania (10%) and Latvia (10%). The biggest rise occurred in imports from the Netherlands, Russia and the Czech Republic. Compared to September 2015, there was a growth in the imports of electrical equipment from the Netherlands, of mineral products from Russia and of electrical equipment from the Czech Republic. The greatest decrease occurred in imports from Finland.

In September, the main commodities imported to Estonia were electrical equipment, agricultural products and food preparations, and transport equipment. The growth in imports was influenced the most by the imports of transport equipment and raw materials and products of the chemical industry. The biggest fall occurred in the imports of mechanical appliances.

In the 3rd quarter of 2016, exports increased 7% and imports 1%, the previous time that exports grew this much quarter-over-quarter was in the 3rd quarter of 2012. Export growth compared to the same period of 2015 was influenced the most by the increased exports of electrical equipment and mineral products. In the 3rd quarter, among destination countries, the biggest increase occurred in exports to Mexico, Romania and the Netherlands.

Read more from Statistics Estonia

In August, the trade deficit was at the lowest level of 2016

According to Statistics Estonia, in August 2016, the exports of goods increased by 12% and imports by 8% compared to August of the previous year. Export growth was faster than import growth and reduced the trade deficit, which was at the lowest level of this year.

In August, exports from Estonia amounted to 1 billion euros and imports to Estonia to 1.1 billion euros at current prices. The trade deficit was 80 million euros (in August 2015, it was 108 million euros).

The top destination country of Estonia’s exports in August was Sweden (17% of Estonia’s total exports), followed by Finland (16%) and Latvia (10%). The biggest increase occurred in exports to Mexico, Finland and Germany (up by 33 million, 19 million and 14 million euros, respectively). Compared to August 2015, more electrical equipment was exported to Mexico, more mechanical appliances, optical appliances, wood and articles of wood to Finland, and more electrical equipment and miscellaneous manufactured articles to Germany. The biggest decrease occurred in exports to the Netherlands.

The biggest share in Estonia’s exports in August was held by electrical equipment, followed by miscellaneous manufactured articles, wood and articles of wood, and mineral products. The increase in exports was greatly influenced by the exports of electrical equipment (incl. communication equipment), miscellaneous manufactured articles (incl. prefabricated buildings of wood) and transport equipment (incl. motor cars). There was a decrease in the exports of mechanical appliances.

The share of goods of Estonian origin in total exports was 71% in August. Export growth was influenced the most by the exports of goods of Estonian origin, which increased 14% while the re-export of foreign goods grew 7%. The growth in the exports of goods of Estonian origin compared to August 2015 was influenced the most by a rise in the exports of electrical equipment, miscellaneous manufactured articles, mineral products, base metals and articles of base metal. Among goods of Estonian origin, the biggest decrease occurred in the exports of agricultural products and food preparations. By country, the exports of goods of Estonian origin increased the most in terms of exports to Mexico, Finland and Germany.

The main countries of consignment in August were Finland (13% of Estonia’s total imports), Germany (11%) and Lithuania (10%). The biggest rise occurred in imports from Russia, Germany and China. Compared to August 2015, there was a growth in the imports of mineral products from Russia, of transport equipment from Germany and of electrical equipment from China. The greatest decrease occurred in imports from Poland.

In August, the main commodities imported to Estonia were electrical equipment, agricultural products and food preparations, mechanical appliances, transport equipment and mineral products. The growth in imports was influenced the most by increased imports of transport equipment, agricultural products and food preparations, textiles and textile articles. The biggest fall occurred in the imports of mineral products.

In August 2016, export prices were at the same level as in August 2015, but import prices were down by 3%.

In August compared to July, the exports of goods increased by 15% and imports by 5%.Diagram: Estonia’s foreign trade by month, 2014–2016

Read more from Statistics Estonia

In July, trade decreased

According to Statistics Estonia, in July 2016, the exports of goods decreased by 6% and imports by 4% compared to July of the previous year. The fall in the exports and imports of goods was influenced the most by the trade with European Union countries.

In July, exports from Estonia amounted to 0.9 billion euros and imports to Estonia to 1.1 billion euros at current prices. There was a significant fall in trade with EU Member States: exports dropped by 8% and imports by 7% compared to July 2015. The trade deficit was 165 million euros (in July 2015, it was 156 million euros).

The top destination country of Estonia’s exports in July was Finland (16% of Estonia’s total exports), followed Sweden by (16%) and Latvia (10%). There was a fall in exports to all neighbouring countries, with the biggest fall having occurred in exports to Sweden and Latvia.  Compared to July 2015, there were decreased exports of electrical equipment and prefabricated buildings of wood to Sweden, and decreased exports of motor spirits and transport equipment to Latvia. The biggest increase occurred in exports to Nigeria and Mexico.

The biggest share in Estonia’s exports in July was held by electrical equipment, followed by mineral products, wood and articles of wood, agricultural products and food preparations, and mechanical appliances. The drop in exports was greatly influenced by a fall in the exports of mineral products (incl. motor spirits) and raw materials and products of the chemical industry (down by 22 million and 10 million euros, respectively).

The main countries of consignment in July were Finland (13% of Estonia’s total imports), Germany (12%) and Lithuania (10%). The biggest drop occurred in imports from Finland and Latvia. Compared to July 2015, there was a fall in the imports of optical appliances from Finland and of electrical equipment from Latvia. The greatest increase occurred in imports from China.

In July, the main commodities imported were electrical equipment, agricultural products and food preparations, mechanical appliances, transport equipment and mineral products. The fall in imports was influenced the most by decreased imports of mineral products (down by 25 million euros).

In July compared to June, the exports of goods decreased by 10% and imports by 7%.

The share of goods of Estonian origin in total exports was 69% in July, being the lowest level this year. The fall in the exports of goods of Estonian origin compared to June 2016 was influenced the most by a drop in the exports of electrical equipment, furniture, base metals and articles of base metal, and wood and articles of wood. Compared to June, the biggest increase has occurred in the exports of mineral products (inc. light fuel oil and electrical energy). By country, the exports of goods of Estonian origin decreased the most in terms of exports to Sweden, Mexico, Finland, Germany and Belgium.Diagram: Estonia’s foreign trade by month, 2014–2016

Source: Statistics Estonia
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Estonia is 38th in World Bank’s logistics performance ranking

Estonia has risen by one notch, to the 38th position, in this year’s World Bank logistics performance rankings, coming in ahead of its southern neighbor Latvia but behind Lithuania.

Countries’ performance was measured according to six criteria: customs, infrastructure, international shipments, logistics competence, tracking and tracing, and timeliness.

Read more from ERR News