Estonian companies expand market share in Europe; Finnish market recovers slowly

Estonia's exports of goods and services saw a 2.6% increase in the first quarter, while imports rose by 3%. This growth was primarily fueled by industrial goods and demand from key trading partners including Latvia, Sweden, and other European Union markets. The overall trade turnover for goods and services expanded by 2.8% in the same period.

While the growth in goods exports continued from the previous year, it was more modest at the beginning of the year. Sectors supporting manufacturing, such as machinery and equipment, electrical equipment, and metals, contributed significantly. Exports to Latvia and Sweden showed the strongest growth in the first quarter, although Poland, Germany, and Lithuania have seen the largest overall increase in goods exports throughout the year, with Estonian companies expanding their market share in these countries.

The Finnish market continues its slow recovery, but exports to Finland have seen a slight increase since the beginning of the year. The import of goods was boosted by increased stockpiling of defense-related goods, defense investments, and a general pickup in private consumption. Imports of machinery, equipment, and electronic goods led this growth, with overall goods imports rising by 4% compared to the previous year.

Services exports grew by 4% in the first quarter, though this was less dynamic than in the previous year. Business services exports increased by 19%, and travel services exports grew by 5%. However, exports of computer and transport services declined. Within transport services, maritime transport exports are growing while road transport is decreasing, despite road transport constituting nearly a third and maritime transport about a quarter of the total export turnover for transport services.

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If at the end of last year, the growth of goods exports included several important commodity groups, then at the beginning of the year, although the export turnover continued to grow, it was somewhat more modest. The improvement in goods exports was supported by commodity groups related to the manufacturing industry, such as machinery and equipment, electrical equipment, and metals and metal products. In the first quarter, the export turnover of goods sent to Latvia and Sweden grew the most. On average for the year, however, the export of goods has increased the most to Poland, Germany, and Lithuania, and entrepreneurs have increased their market share in these markets. The Finnish market is still recovering slowly, but since the beginning of the year, the turnover of goods exports to it has increased somewhat. In summary, according to the balance of payments, goods exports grew by 2% in the first quarter.