Estonia's trade deficit deepens in 2014

By bne IntelliNews February 10, 2015

Estonia’s trade deficit increased to €1.6bn in 2014, €126mn more than in 2013, according to data released by Estonian Statistics on January 10.

Following the introduction of Russian sanctions on European Union agricultural produce, Estonia’s exports dwindled by 2% y/y in 2014. Imports dropped 1%. 

Top export destinations were Sweden, Finland, and Latvia. Russia dropped from third to fourth place following a 15% y/y fall in exports.

However, there is hope that with the EU absorbing 72% of Estonian exports (the single currency area is also responsible for 83% of imports) the effect of the Russian embargo, as well as the economic slowdown and crash of the ruble, might not be as negative as previously feared.

According to the European Commission's latest outlook, Estonia's trade balance “should remain positive throughout the forecast period [2015/2016], supported by the recovery in the Eurozone demand from mid-2015.”

Eesti Pank, meanwhile, is pushing Estonian business to seek expansion into new markets. “Diversifying markets would also help to improve the outlook for economic growth, as Estonia’s current trading partners are growing more slowly than the rest of the world,” the central bank noted in December.

Related Articles

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Central European and Baltic economies shrugging off political uncertainty

Medium-term economic growth forecasts for Central Europe and the Baltics have been raised by The Vienna Institute for International Economic Studies (wiiw) in a report issued on June 29. The most ... more

Germany and Gazprom question need for EU talks on Nord Stream 2

A joint EU mandate to discuss the operating rules that would apply to Russia's planned Nord Stream 2 gas pipeline is not necessary, Angela Merkel said on June 15. Russian state-controlled ... more

Dismiss