Exports and imports of goods fell significantly in July

Jane Leppmets, analyst at Statistics Estonia, noted that a big factor behind the decline in both exports and imports of goods this July was the higher reference base of 2022, when both electricity and other goods were more expensive than usual. Year on year, export prices fell by 3% and import prices by nearly 5% in July, but exports of goods of Estonian origin decreased by as much as 29% and re-exports by 22%. “Exports dropped to the level of 2021 and the trade deficit is the largest so far this year, thus the decline in exports is substantial. Trade with non-EU countries in particular fell significantly – exports by 42% and imports by 54%,” Leppmets added.

The main commodities exported in July were electrical equipment (14% of Estonia’s total exports), transport equipment (12%), agricultural products and food preparations (11%), and wood and articles of wood (11%). The biggest fall was recorded in the exports of mineral products (down by 341 million euros). The exports of electrical equipment, miscellaneous manufactured articles, and mechanical appliances decreased by 38 million, 19 million, and 18 million euros, respectively. Exports of transport equipment grew the most, by 40 million euros.

Estonia’s top export partner in July was Finland (15% of Estonia’s total exports), followed by Latvia (14%) and Lithuania (9%). The main commodities exported were electrical equipment (incl. static converters) to Finland, mineral products (incl. electricity) to Latvia, and transport equipment (incl. motor cars) to Lithuania. The biggest decline was registered in exports to Latvia, the United States, and Greece. Compared with July last year, there were decreased exports of mineral products (incl. electricity) to Latvia, electrical equipment (incl. communication equipment) to the US, and mineral products (incl. various mineral oils) to Greece. The greatest rise occurred in exports to Turkey, to which more base metals and articles of base metal (incl. iron and steel waste) were exported than last year.

The main commodities imported in July were transport equipment (15% of Estonia’s total imports), electrical equipment (12%), agricultural products and food preparations (12%), and mineral products (12%). The biggest fall was recorded in the imports of mineral products (down by 249 million euros). The imports of base metals and articles of base metal, wood and articles of wood, and mechanical appliances decreased respectively by 89 million, 40 million, and 39 million euros. Imports of transport equipment increased the most, by 53 million euros.

In July, the top partner countries for Estonia’s imports of goods were Finland (15% of Estonia’s total imports), Germany (11%), Latvia (10%), and Lithuania (10%). The main commodities imported were mineral products (incl. electricity) from Finland, transport equipment (incl. motor cars) from Germany, mineral products (incl. natural gas) from Latvia, and mineral products (incl. petroleum oils) from Lithuania. The biggest fall occurred in imports of goods from Russia, Finland, and Lithuania due to decreased imports of mineral products. Compared with July 2022, there were fewer imports of various mineral and petroleum oils from Russia, lower imports of electricity from Finland, and smaller imports of petroleum oils from Lithuania. Imports from the Netherlands increased the most, with more imports of optical, measuring and precision instruments than last year.

(Source: https://www.stat.ee/en/news/exports-and-imports-goods-fell-significantly-july)