Estonia’s exports of services greatly exceeded imports of services

In the fourth quarter of 2021, Estonia’s exports of services amounted to 2.7 billion euros and imports of services to 1.7 billion euros. The balance of foreign trade in services was in surplus by 934 million euros, which is 418 million euros more than in the fourth quarter of 2020.

Evelin Puura, leading analyst at Statistics Estonia, said that the strong growth in exports of services was influenced by the low reference base of the fourth quarter of 2020 as well as by increased sale of services. “Looking at foreign trade as a whole, including trade in both services and goods, it is good to see that the volume of services exports balances out the high imports of goods and thereby ensures the positive balance of Estonia’s foreign trade as a whole,” added Puura.

The most exported services were transport services and other business services as well as telecommunications, computer and information services. Compared to the fourth quarter of 2020, the biggest increase occurred in the exports of transport services (up by 368 million euros) and charges for the use of intellectual property (up by 263 million euros). Freight transport by road and sea was the biggest driver of transport services exports. A decrease was recorded only in the exports of construction services, which fell by 10 million euros.

The main partner country for exports of services was Finland. The main services supplied to Finland were transport services, other business services and travel services. Finland was followed by Germany and Sweden. The biggest increase occurred in exports to Germany and Finland. The exports of charges for the use of intellectual property grew the most in exports to Germany. In exports to Finland, the exports of travel services increased the most.

The main services imported were transport services, other business services, and telecommunications, computer and information services. Compared to the fourth quarter of 2020, the imports of transport services and other business services increased the most. The imports of transport services grew by 296 million euros and the imports of other business services by 144 million euros. The biggest decline was in the imports of telecommunications, computer and information services (down by 1,094 million euros).

The top partner country for imports of services was Finland which supplied transport services and other business services to Estonia. Finland was followed by Germany and Latvia. Imports from Finland grew the most, by 19 million euros, driven by increased purchases of transport services. At the same time, there was a decrease in imports of telecommunications, computer and information services from Germany, which fell by nearly 1.3 billion euros.

In 2021, exports and imports of services were at a record level compared to 2020. Estonia’s exports of services were 8.4 billion euros and imports nearly 7 billion euros. Both exports and imports were influenced the most by increased trade in transport services, telecommunications, computer and information services, and other business services. Decreases were only recorded in the exports of construction and maintenance services, and in the imports of construction services. Exports of services were the highest to Finland, Germany and Sweden. The top countries for imports of services were Germany, Finland and Lithuania.

(Source: https://www.stat.ee/en/node/258640)