Estonia's industrial production nosedived from the middle of 2008 until spring 2009 and have only recovered anemically since.
TALLINN — The decrease of Estonian industrial production slowed down by 13.7 percent in November compared to the same period last year, according to the country’s Department of Statistics.
The decrease in industrial production has shown signs of ebbing since October, in which 21 percent decrease comparing to Oct. 2008. The numbers don’t indicate much improvement in the Estonia’s beleaguered economy, though, as the slackening decline is caused by a slight increase in external demand and how the depth of the crisis one year ago affects the comparison.
“First there is growth in foreign markets, but secondly a change in a comparison basis as the deeper decrease in industry began in October and November 2008, therefore the comparison base now is significantly lower than it was in the summer,” Maris Lauri, an economist for Swedbank told Baltic Reports.
Manufacturing fell by 13.3 percent in November compared to the same period in 2008, but grew 2.8 percent compared to October 2009. The decline is mainly caused by small demand on domestic and external markets.
Lilian Bõkova, leading statistician at Statistics Estonia said that although compared to the previous month, November’s production was a little higher but that one month doesn’t change much anything, but said that the trend could continue until the decrease is eliminated in the second quarter.
“The trend is going higher bit by bit and hopefully in the second quarter the industrial production will rise closer to zero,” Bõkova told Baltic Reports.
The crisis eliminated five year's worth of growth in Estonian industrial production, and recovery remains fragile. Source: Statistics Estonia
Most of the industrial sector remained in decline excluding beverage, textiles, refined petroleum, electronic products and motor vehicles production. Wood and paper production showed the smallest decrease by 0.5 and 4 percent. Chemical products decreased the most, by 48.4 percent.
The decrease in production of wearing apparel, leather, machinery and equipment was over 30 percent. The manufacture of building materials, metal products, and electrical equipment decreased more than 20 percent.
The decrease in electricity production was also remarkable, by 32 percent, mainly caused by a partial replacement of Estonia’s own production with imports from Lithuania and Latvia as the Baltic Open Energy Market has opened barriers set by state monopolies. Energy production decreased 2 percent comparing to November last year.
