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Saturday, December 8, 2007

Estonia Trade Balance September 2007

According to preliminary data from Statistics Estonia, in September 2007 Estonian foreign trade turnover was at a level of 23.3 billion kroons, with exports at 9.8 billion kroons (42%) and imports at 13.5 billion kroons (58%). Compared to September 2006, the exports of goods decreased by 8%, while compared to August 2007 they decreased by 5%. Compared to September 2006, the imports of goods decreased 7% and compared to August 2007 they decreased be 4%.

Compared to September 2006, total foreign trade turnover decreased 7% and compared to August 2007 it decreased 5%. The trade deficit was 3.7 billion kroons (4 billion kroons in September 2006 and 3.8 billion kroons in August 2007).

What all this means in simple language is that Estonia has been running a consistant foreign trade deficit.

and both exports and imports have been in decline of late, imports due to the slowdown in domestic demand, and exports due to the lack of price competitiveness of Estonian products. If we look at the year on year movements of the two, the downward trend is horribly clear I'm afraid.

And unfortunately, that August surge in exports looks rather like the last surge of something, at least until the issue of relative export prices is resolved, one way or another.

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