TALLINN — In another sign that the worst of the crisis is in the rear view mirror, Estonia’s industrial production in February improved nearly 5 percent from the previous year.

While domestic demand continues to weaken, a rise in exports boosted Estonian manufacturing. The sales for export grew by 12 percent, but in domestic level it decreased by 9 percent compared to February last year, impacted by high unemployment and reduced wages. Statistics Estonia reported Tuesday that industrial production in [private_supervisor]February increased by 4.8 percent comparing to Feb. 2009.

The best results were in production of electronics which grew by 65 percent and timber by 18 percent, both due to increased foreign demand. The production of metal parts, motor vehicles, refined petroleum, plastic products, building materials and furniture also improved.

The cold weather played a magnificent role in the 7 percent rise of heat and 19 percent electricity production.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said he expects the orders for electronics industry and timber to continue to increase but that chemical productions will continue to lull.

“We believe that it is not a temporary occasion, as the production costs have decreased in the crisis and our competitiveness increased,” Lember told Baltic Reports, “Several Scandinavian enterprises have moved their production over to Estonia or are still doing it, and it is good for our production and export capacities.”

Denmark’s children furniture producer Flexa Holding announced earlier this month that it is relocating production to Estonia to save costs.

Domestic demand will remain modest, according to Annika Paabut, a Swedbank analyst. Paabut said that timber and electronics production grow largely thanks to higher external demand.

“Also other sub-branches showed a modest increase and we believe that along with the reviving economy in the world the external demand will rise even more and the demand for Estonian products will grow,” Paabut told Baltic Reports.

Not all sectors are doing well. Production of clothing, chemicals and machinery declined by as much as 5 percent year-on-year.

Minister of Economy Juhan Parts told Äripäev Wednesday, that in short term the increase in industrial production will help rejuvenate the hard-hit Estonian economy.

“Some numbers of in the electronics sector and Ericsson show some hope this year. One or two important manufacturers can make a picture see a lot optimistic,” said Parts.

Yet Parts said he is worried about the macroeconomic problems in foreign markets which may also affect Estonian export activities, specifically the high debt levels. [/private_supervisor] [private_subscription 1 month]February increased by 4.8 percent comparing to Feb. 2009.

The best results were in production of electronics which grew by 65 percent and timber by 18 percent, both due to increased foreign demand. The production of metal parts, motor vehicles, refined petroleum, plastic products, building materials and furniture also improved.

The cold weather played a magnificent role in the 7 percent rise of heat and 19 percent electricity production.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said he expects the orders for electronics industry and timber to continue to increase but that chemical productions will continue to lull.

“We believe that it is not a temporary occasion, as the production costs have decreased in the crisis and our competitiveness increased,” Lember told Baltic Reports, “Several Scandinavian enterprises have moved their production over to Estonia or are still doing it, and it is good for our production and export capacities.”

Denmark’s children furniture producer Flexa Holding announced earlier this month that it is relocating production to Estonia to save costs.

Domestic demand will remain modest, according to Annika Paabut, a Swedbank analyst. Paabut said that timber and electronics production grow largely thanks to higher external demand.

“Also other sub-branches showed a modest increase and we believe that along with the reviving economy in the world the external demand will rise even more and the demand for Estonian products will grow,” Paabut told Baltic Reports.

Not all sectors are doing well. Production of clothing, chemicals and machinery declined by as much as 5 percent year-on-year.

Minister of Economy Juhan Parts told Äripäev Wednesday, that in short term the increase in industrial production will help rejuvenate the hard-hit Estonian economy.

“Some numbers of in the electronics sector and Ericsson show some hope this year. One or two important manufacturers can make a picture see a lot optimistic,” said Parts.

Yet Parts said he is worried about the macroeconomic problems in foreign markets which may also affect Estonian export activities, specifically the high debt levels. [/private_subscription 1 month] [private_subscription 4 months]February increased by 4.8 percent comparing to Feb. 2009.

The best results were in production of electronics which grew by 65 percent and timber by 18 percent, both due to increased foreign demand. The production of metal parts, motor vehicles, refined petroleum, plastic products, building materials and furniture also improved.

The cold weather played a magnificent role in the 7 percent rise of heat and 19 percent electricity production.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said he expects the orders for electronics industry and timber to continue to increase but that chemical productions will continue to lull.

“We believe that it is not a temporary occasion, as the production costs have decreased in the crisis and our competitiveness increased,” Lember told Baltic Reports, “Several Scandinavian enterprises have moved their production over to Estonia or are still doing it, and it is good for our production and export capacities.”

Denmark’s children furniture producer Flexa Holding announced earlier this month that it is relocating production to Estonia to save costs.

Domestic demand will remain modest, according to Annika Paabut, a Swedbank analyst. Paabut said that timber and electronics production grow largely thanks to higher external demand.

“Also other sub-branches showed a modest increase and we believe that along with the reviving economy in the world the external demand will rise even more and the demand for Estonian products will grow,” Paabut told Baltic Reports.

Not all sectors are doing well. Production of clothing, chemicals and machinery declined by as much as 5 percent year-on-year.

Minister of Economy Juhan Parts told Äripäev Wednesday, that in short term the increase in industrial production will help rejuvenate the hard-hit Estonian economy.

“Some numbers of in the electronics sector and Ericsson show some hope this year. One or two important manufacturers can make a picture see a lot optimistic,” said Parts.

Yet Parts said he is worried about the macroeconomic problems in foreign markets which may also affect Estonian export activities, specifically the high debt levels. [/private_subscription 4 months] [private_subscription 1 year]February increased by 4.8 percent comparing to Feb. 2009.

The best results were in production of electronics which grew by 65 percent and timber by 18 percent, both due to increased foreign demand. The production of metal parts, motor vehicles, refined petroleum, plastic products, building materials and furniture also improved.

The cold weather played a magnificent role in the 7 percent rise of heat and 19 percent electricity production.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said he expects the orders for electronics industry and timber to continue to increase but that chemical productions will continue to lull.

“We believe that it is not a temporary occasion, as the production costs have decreased in the crisis and our competitiveness increased,” Lember told Baltic Reports, “Several Scandinavian enterprises have moved their production over to Estonia or are still doing it, and it is good for our production and export capacities.”

Denmark’s children furniture producer Flexa Holding announced earlier this month that it is relocating production to Estonia to save costs.

Domestic demand will remain modest, according to Annika Paabut, a Swedbank analyst. Paabut said that timber and electronics production grow largely thanks to higher external demand.

“Also other sub-branches showed a modest increase and we believe that along with the reviving economy in the world the external demand will rise even more and the demand for Estonian products will grow,” Paabut told Baltic Reports.

Not all sectors are doing well. Production of clothing, chemicals and machinery declined by as much as 5 percent year-on-year.

Minister of Economy Juhan Parts told Äripäev Wednesday, that in short term the increase in industrial production will help rejuvenate the hard-hit Estonian economy.

“Some numbers of in the electronics sector and Ericsson show some hope this year. One or two important manufacturers can make a picture see a lot optimistic,” said Parts.

Yet Parts said he is worried about the macroeconomic problems in foreign markets which may also affect Estonian export activities, specifically the high debt levels. [/private_subscription 1 year]

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