In June the trade deficit increased

In June 2012, exports from Estonia amounted to 1.02 billion euros and imports to Estonia to 1.14 billion euros at current prices. The trade deficit was 122 million euros, which was nearly three times bigger compared to June 2011. The trade deficit was last bigger in March 2010, when it was 177 million euros.

In the first half-year of 2012, exports increased by 3% and imports by 6%. As imports have grown faster than exports, so the trade deficit of the half-year has also significantly increased. It was registered as 574 million euros, the biggest deficit in the last three and half years.

In Estonia’s exports in June, the biggest share was held by machinery and equipment (29% of Estonia’s total exports), followed by mineral fuels (incl. motor spirits, shale oils and electricity – 14%) and metals and products thereof (9%). The increase in exports compared to June 2011 was mainly influenced by the increase in the dispatches of machinery and equipment (up by 6%). An increase was also mentioned in the dispatches of mineral fuels and agricultural products and food preparations (the growth rate 12% and 18%, respectively).

In June the biggest share of Estonia’s imports was held by machinery and equipment (28% of Estonia’s total imports), followed by mineral fuels (17%) and agricultural products and food preparations (10%). There was a significant increase in the arrivals of mineral fuels (up by 38%) compared to June of the previous year.

The biggest share of commodities was exported to Sweden (19% of Estonia’s total exports), Finland (16%) and Russia (13%). Compared to June 2011, the increase in total exports was mostly influenced by the increase in the dispatches to Sweden and Russia (up by 21% and 33%, respectively). Electrical equipment, fuels, wood and products of wood were the main commodities exported to Sweden, electrical equipment and furniture to Finland and mechanical and electrical equipment and dyeing products to Russia.

The main countries of consignment were Finland (15% of Estonia’s total imports), Sweden (11%) and Latvia (10%). The increase in total imports was mostly influenced by the increase in the arrivals from Finland, Belarus and Russia. Fuels and electrical equipment were the main commodities imported from Finland, electrical equipment and transport equipment from Sweden, and fuels and electrical equipment from Latvia.

Compared to May this year, exports decreased by 2% and imports by 1%. The slight decrease in the monthly comparison might be influenced also by the usual trade decrease due to the beginning of the holiday season in June.

According to the Estonian Institute of Economic Research, the economic sentiment indicator, which reflects Estonia’s entrepreneurs’ and consumers’ confidence, has also shown a positive trend in the first months of the year. But in July the indicator deteriorated in Estonia, as well as in Sweden and Finland.