Estonia’s Foreign Trade Witnesses Substantial Decline in 2023

Statistics Estonia has unveiled data indicating a significant downturn in the realm of both exports and imports of goods throughout the course of 2023 when juxtaposed with the preceding year’s figures. Exports of goods experienced a marked decline of 16 percent, tallying to €18 billion, while imports faced an even steeper decline of 17 percent, amounting to €21 billion at current prices. Consequently, the trade deficit saw a notable narrowing, shrinking to €3 million, a decrease of €695 million from the figures recorded in 2022.

Jane Leppmets, an analyst at Statistics Estonia, pointed out that the European Union continued to serve as Estonia’s principal trading partner, constituting 74 percent of exports and a commanding 86 percent of imports in 2023. Noteworthy was the observation that trade with EU member states underwent a comparatively moderate decline, with exports and imports decreasing by 12 percent and 10 percent, respectively. Conversely, trade with non-EU countries witnessed a more pronounced decline, with exports and imports plummeting by 26 percent and 43 percent, respectively. Particularly noteworthy was the staggering 92 percent decrease in imports from Russia.

Leppmets further accentuated that the trade deficit was most conspicuous in sectors such as transport equipment, raw materials, and the chemical industry, while a surplus was discerned in the trade of wood and wood products alongside miscellaneous manufactured articles.  Diving deeper into the realm of exports, the landscape in 2023 saw key commodities such as electrical equipment, agricultural products and food preparations, and wood and wood products dominating the export charts. On the flip side, exports of mineral products, wood products, and miscellaneous manufactured goods bore the brunt of the decline, whereas the export of transportation equipment experienced a notable surge.

Despite the overarching decline in exports, the proportion of goods of Estonian origin within the total export framework remained steadfast at 64 percent. Notable contractions were noted in exports of processed oil, shale oil, and communication equipment. The narrative concerning import partners unfolded with Finland, Latvia, and Sweden emerging as Estonia’s primary export destinations in 2023. The main export items to these countries included electrical equipment, base metals, and mineral products. However, exports to Finland, Latvia, and the United States witnessed significant declines vis-a-vis the preceding year.

In the import arena, electrical equipment, transport equipment, mineral products, and agricultural products took center stage among the top commodities. Imports from Finland, Germany, and Latvia constituted a substantial portion of Estonia’s total imports, with mineral products, electrical equipment, and base metals emerging as the main imported items. Imports from Russia witnessed a considerable decrease, alongside imports from Finland and Latvia. Conversely, imports from Czechia experienced a notable surge, particularly in the domain of transport equipment.

Zooming into December 2023, both exports and imports of goods witnessed a downturn, with electrical equipment, agricultural products, and wood products emerging as the primary commodities in focus. Exports were chiefly directed towards Finland, Latvia, and Sweden, while imports primarily originated from Finland, Lithuania, Germany, and Latvia.

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