In July machinery and equipment made up nearly a third of Estonia’s trade

Estonia’s exports of goods grew by 34% and imports by 38% in July compared to July of the previous year. Due to a faster growth in imports compared to exports, also the foreign trade deficit increased. In July this year, the foreign trade deficit accounted for 81 million euros compared to 35 million euros in July 2010.

If in July of the previous year, the share of machinery and equipment accounted for nearly a quarter of Estonia’s total exports, then in July this year already one third. The share of machinery and equipment in total trade of Estonia was higher last in October 2005.

In exports in July, the biggest shares were held by machinery and equipment (32% of Estonia’s total exports), mineral products (incl. motor spirits, fuel oils and electricity) (15%), and metals and products thereof (9%). The growth in exports was significantly influenced by the dispatches of machinery and equipment that grew by nearly twice (91%) compared to July of the previous year. Growth in exports was also influenced by the increase in the dispatches of mineral products and agricultural products and food preparations (28% and 24%, respectively). The dispatches of transport equipment slightly decreased (3%).

In July the biggest shares of imports were held by machinery and equipment (31% of Estonia’s total imports), mineral products (15%), and agricultural products and food preparations (10%). Compared to July 2010, the arrivals of machinery and equipment were also influenced the most by the growth of imports, increasing by nearly twice (83%). The growth of imports was also influenced by the increase in the arrivals of mineral products and transport equipment (28% and 49% respectively).

The first place among the destination countries of exports was held by Sweden (18% of Estonia’s total exports), followed by Finland (14%) and Russia (12%). Electrical equipment and wood and articles of wood were mainly exported to Sweden and Finland, mechanical and electrical equipment to Russia. Compared to July of the previous year, exports increased the most to Sweden and USA (by 72 and 31 million euros, respectively).

The largest amounts of goods were imported from Sweden and Finland (both 13% of Estonia’s total imports), followed by Germany (11%). From all those countries, mainly electrical equipment was imported. Compared to July of the previous year, the arrivals of goods from Sweden and Lithuania increased the most (by 54 and 31 million euros, respectively).

Compared to June, exports of goods in July decreased by 2%, but imports slightly increased (1%). Compared to the previous month, in July exports decreased already for the second month in succession. The economic sentiment indicator of the Estonian Institute of Economic Research which reflects enterprisers and consumers confidence is also showing a continuous falling trend in the last months. According to Eurostat, the same indicator is declining also in Estonia’s main partner countries – Finland and Sweden.

Estonia’s trade by months, 2008–2011