TALLINN — While the smallest Baltic State’s industrial production is up 17 percent from the period last year, but has declined since April due to weak domestic demand.

The industrial production increased by 5 percent compared to last May, and exceeded the last year’s level in most branches according to Statistics Estonia. The growth was mainly influenced by the manufacture of electronic products which grew by 1.5 times and timber production which grew by 27 percent. Export sales in manufacturing made a 46 percent hike, but the domestic demand was still insufficient and the domestic sales fell by 6 percent compared to May 2009. Two-thirds of the industrial production was sold on external market this May.

The increase was also recognized in the production of motor vehicles, metals, paper, plastic products, machinery and equipment, mainly relying on foreign demand and export growth. Also low reference base plays a significant role and it will last until the end of 2010 according to statistics bureau analysts.

This article is free to view. To read Baltic Reports’ subscription-only articles, click here.