The merchandise trade deficit narrowed by 26.3% y/y to EUR137.1m in July, according to figures of the statistical office, published on Monday. In cumulative terms, the merchandise trade deficit in the period January-July narrowed down by 6.3% y/y to EUR1.2bn.
Back to July figures, export growth accelerated tangibly to 26.7% y/y, up from 16.6% y/y in June, signaling for still strong demand among Estonia’s trading partners. The top destination countries of Estonia’s exports were Finland (16% of total exports of goods), Sweden (9%), Latvia (9%) and the USA (10%). The largest increase was registered by exports to the USA (up by EUR54m, driven by data communication equipment and mineral products), Finland (up by EUR47m), Saudi Arabia (up by EUR45m) and Singapore (up by EUR35m). Regarding commodity groups, the biggest share in exports was held by mineral products (22%), electrical equipment (15%), followed by wood and articles of wood (9%).The most significant increase during the month was recorded in the exports of mineral products (up by EUR184m), wood and articles of wood (up by EUR13m) and base metals and articles of base metal (up by EUR12m).
Meanwhile, import growth slowed down marginally from 18.7% y/y in June to 17.9% y/y in July, but still remained strong, in line with solid domestic demand. The country’s key import partners in July were Finland (13%), Germany (11%) and Lithuania (10%). The main imported commodities during the month were mineral products (15%), electrical equipment (14%) and mechanical appliances (11%). The greatest increase was recorded in the imports of mineral products — up by EUR104m, likely affected by international oil prices, mechanical appliances (up by EUR29m), and base metals and articles of base metal (up by EUR16m).