Net sales of enterprises decreased by nearly a fourth
According to Statistics Estonia, the net sales of the business sector amounted to 130 billion kroons in the 2nd quarter of 2009 which at current prices was 23% less than in the 2nd quarter of the previous year.
Compared to the 2nd quarter of the previous year, the net sales decreased in all economic activities except electricity, gas, steam and air conditioning supply where the revenues increased 6%. Growth in this economic activity was caused by the increase in electricity export. The decrease in net sales was mainly influenced by the wholesale and retail trade, manufacturing and construction enterprises due to a bigger share of these economic activities in gross net sales.
The decreased demand and an ever growing competition for the market have made enterprises cut down on their expenses. At the same time, the decrease in total costs is slower than the decrease in net sales. This has reduced the profitability of enterprises. The total profit of enterprises amounted to 5.4 billion kroons in the 2nd quarter. The total profit decreased more than two times compared to the same quarter of the previous year. Agriculture, accommodation and food service activities and education were running at a loss. Other economic activities remained at a profit.
Since the beginning of this year, the enterprises’ investments in tangible fixed assets have decreased drastically, too. In the 2nd quarter, enterprises invested 5.4 billion kroons which is about two times less than in the 2nd quarter of 2008. Investments were mainly made in the construction and alteration of buildings and in other equipment and machinery. The major investors were energy, transportation and storage and manufacturing enterprises with more than a half of the total investments of enterprises. Only the investments in land increased (2%). Other investments decreased.
In the 2nd quarter, there were nearly 50,000 operating enterprises with 408,000 employed persons in Estonia.
Net sales, personnel expenses and total profit of the business sector,
1st quarter 2002 – 2nd quarter 2009 (average of the quarters of 2005 = 100)
According to the seasonally adjusted data, the net sales of enterprises decreased 8% in the 2nd quarter of 2009 compared to the 1st quarter. Since the 1st quarter of 2008 the net sales of enterprises have continuously decreased compared to the previous quarter. In the first half of the previous year the fall remained within 1–3%, but starting from the 3rd quarter of the previous year the decrease has dropped to 7–8% already.