The merchandise trade deficit widened by 45.1% y/y to EUR199.2m in October, according to figures of the statistical office, published on Monday. In cumulative terms, the merchandise trade deficit expanded marginally by 1.2% y/y to EUR 1.6bn in January-October.
Back to monthly figures, export growth in October picked up to 17.1% y/y, underpinned by solid demand among Estonia’s key trading partners, the most important of which included Finland (16% of total exports), the USA (11%) and Sweden (10%). In terms of commodity groups, electrical equipment and base metals and base metal goods were the main commodities exported to Finland, electrical equipment and mineral products were the main commodities exported to the USA, while wood and wood goods and miscellaneous manufactured goods were the main commodities exported to Sweden. Overall, the biggest share in the exports of goods was held by electrical equipment and mineral products (17% each of total exports), followed by wood and wood products (11%). The most tangible increase was in the exports of mineral products (up by EUR140m), electrical equipment (up by EUR39m) and wood and wood products (up by EUR16m).
In the meantime, import growth accelerated even more notably to 20.1% y/y, underpinned by strong domestic demand, which has been partially fueled by rising wages and slightly growing employment. Estonia’s key import partners during the month were Finland (12%), Lithuania (11%), Germany and Russia (10% each).The main commodities imported to Estonia were mineral products, electrical equipment and mechanical appliances, transport equipment, agricultural products and food preparations, and base metals and base metal goods. The greatest increase was in the imports of mineral products (up by EUR 153mn), electrical equipment and mechanical appliances (up by EUR21m).