TALLINN — In a sign of economic recovery, Statistics Estonia reported Wednesday that manufacturing activity in January was equal to Jan. 2009.

This doesn’t mean all sectors are doing well. More than 20 percent decline appeared in the production of clothing, chemical, and metal products, but also machinery and equipment. Poor demand also [private_supervisor]affected the decrease in production of food, beverages, building materials and electrical equipment.

However energy production by 24 percent as Eesti Energia expanded into Lithuania following the shutdown of the Ignalina Nuclear Power Plant at the beginning of the year, and the production of high-tech goods is up 30 percent and wood products 14 percent, reflecting the recovery in Estonia’s western export markets.

Maris Lauri, a Swedbank analyst said that the dynamics of industrial production depends on  foreign demand, which means that the production capacity grows in that area.

“The decrease in sectors that produce for local markets, except energy, will continue,” Lauri told Baltic Reports.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said that the behavior of different sectors depends on the demand for certain products which cannot be homogeneous in economy in general. For example, the decrease in beverage production is largely affected by the rise of excise tax in the beginning of the year, making people to buy more beverages at the end of the year, and causing the small demand in the beginning of this year. However, Lember said, it is a temporary influence, which does not last very long.

“Due tiny local market the industry is largely focused on exports, therefore production capacities mainly depend on the recovery of foreign demand for the rest of the year,” Lember told Baltic Reports. [/private_supervisor] [private_subscription 1 month]affected the decrease in production of food, beverages, building materials and electrical equipment.

However energy production by 24 percent as Eesti Energia expanded into Lithuania following the shutdown of the Ignalina Nuclear Power Plant at the beginning of the year, and the production of high-tech goods is up 30 percent and wood products 14 percent, reflecting the recovery in Estonia’s western export markets.

Maris Lauri, a Swedbank analyst said that the dynamics of industrial production depends on foreign demand, which means that the production capacity grows in that area.

“The decrease in sectors that produce for local markets, except energy, will continue,” Lauri told Baltic Reports.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said that the behavior of different sectors depends on the demand for certain products which cannot be homogeneous in economy in general. For example, the decrease in beverage production is largely affected by the rise of excise tax in the beginning of the year, making people to buy more beverages at the end of the year, and causing the small demand in the beginning of this year. However, Lember said, it is a temporary influence, which does not last very long.

“Due tiny local market the industry is largely focused on exports, therefore production capacities mainly depend on the recovery of foreign demand for the rest of the year,” Lember told Baltic Reports. [/private_subscription 1 month] [/private_subscription 4 months]affected the decrease in production of food, beverages, building materials and electrical equipment.

However energy production by 24 percent as Eesti Energia expanded into Lithuania following the shutdown of the Ignalina Nuclear Power Plant at the beginning of the year, and the production of high-tech goods is up 30 percent and wood products 14 percent, reflecting the recovery in Estonia’s western export markets.

Maris Lauri, a Swedbank analyst said that the dynamics of industrial production depends on foreign demand, which means that the production capacity grows in that area.

“The decrease in sectors that produce for local markets, except energy, will continue,” Lauri told Baltic Reports.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said that the behavior of different sectors depends on the demand for certain products which cannot be homogeneous in economy in general. For example, the decrease in beverage production is largely affected by the rise of excise tax in the beginning of the year, making people to buy more beverages at the end of the year, and causing the small demand in the beginning of this year. However, Lember said, it is a temporary influence, which does not last very long.

“Due tiny local market the industry is largely focused on exports, therefore production capacities mainly depend on the recovery of foreign demand for the rest of the year,” Lember told Baltic Reports. [/private_subscription 4 months] [private_subscription 1 year]affected the decrease in production of food, beverages, building materials and electrical equipment.

However energy production by 24 percent as Eesti Energia expanded into Lithuania following the shutdown of the Ignalina Nuclear Power Plant at the beginning of the year, and the production of high-tech goods is up 30 percent and wood products 14 percent, reflecting the recovery in Estonia’s western export markets.

Maris Lauri, a Swedbank analyst said that the dynamics of industrial production depends on foreign demand, which means that the production capacity grows in that area.

“The decrease in sectors that produce for local markets, except energy, will continue,” Lauri told Baltic Reports.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said that the behavior of different sectors depends on the demand for certain products which cannot be homogeneous in economy in general. For example, the decrease in beverage production is largely affected by the rise of excise tax in the beginning of the year, making people to buy more beverages at the end of the year, and causing the small demand in the beginning of this year. However, Lember said, it is a temporary influence, which does not last very long.

“Due tiny local market the industry is largely focused on exports, therefore production capacities mainly depend on the recovery of foreign demand for the rest of the year,” Lember told Baltic Reports. [/private_subscription 1 year]

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