Sunday, March 18, 2018

...The important sectors of the Estonian economy (click here) are the processing industry (approximately 14.5% of the overall production), transport, warehousing and communications (10%), commerce (13.5%) and estate, rental and letting, as well as business services (21%). Agriculture and forestry amount to 2.2% of the overall production, construction approximately 7% and government, education and health care to more than 17%. The percentage of governmental administration, education and health care grew during the economically difficult years, because these sectors had to keep on working despite the crisis.

Due to Estonia's smallness it is impossible to locally produce all the products and services needed by thelocal people and enterprises. But in order to be able to import them, something must be exported. That is why export holds such a prominent position for the Estonian economy and its growth. The volume of export of goods and services amounts to 73% of the Estonian GDP, export of services constitutes about one third thereof. The main services the export of which brings profit to Estonian enterprises are various services related to transport and Russian transit but also procceeds from tourism. More than two thirds of the Estonian industrial production is for export.

Expanding into new markets will always bring about enhanced GDP. Many of the Post Soviet states recognize the markets of Europe and want a relationship wtih them. There is nothing to lose by expanding markets and everything to gain.

...Joining the European Union (click here) was good for Estonian agriculture, because from then on it was possible to sell food products to other European countries, as there were no longer any customs or importation restrictions, and the Russian market opened up again, too. Estonian farmers began receiving various grants that are still significantly smaller than in western Europe, although manufacturing costs have risen to almost the same level. Recent years have seen Estonian agricultural enterprises getting bigger. Modern technologies are being used more and more; there’s almost nothing left of the old manufacturing sector.

Milk cattle, also pigs and poultry are the main farm animals raised in Estonia. Field crops include cereal crops, potatoes and vegetables. Plant products are mostly for internal use, a considerable amount of meat is imported. Some dairy products and some specific products – e.g. cultivated and wild berries, mushrooms, ecologically pure produce etc -are for export. The figures of productivity of the Estonian agriculture are surpassed by those of many climatically better situated countries, but the local produce contain considerably less chemicals and organic farming is gaining popularity....

...The production and export of wooden construction details, wooden furniture and wooden houses has been going up consistently. The main export destinations are Finland, Sweden, Germany, Norway and Great Britain. Timber companies are located all over Estonia, a number of them in small towns or even in villages....