Total profit of business sector decreased in 2016
According to the preliminary data fo Statistics Estonia, the total profit of Estonia's business sector in 2016 was €2.7 billion, a decrease of 10 percent compared to the previous year.
The business sector's total profit decreased for the second year in a row, according to a Statistics Estonia press release.
Compared to 2015, the total profit decreased in most economic activities. The biggest contribution to the total profit was made by trade and energy companies, while the growth in the profit of the business sector was negatively affected by manufacturing, real estate and transportation and storage enterprises. Manufacturing profits decreased by one third compared to 2015, primarily due to the decrease in profits of the export-oriented manufacture of fuel oil, metal products and wood.
In 2016, businesses in Estonia sold €50.2 billion worth of goods and services, a two-percent increase on the previous year. The biggest growth was recorded in the arts, entertainment and recreation categories. The turnover of trade enterprises, which have the biggest share in the total turnover of the business sector, increased four percent, affected mainly by an increase in the turnover of motor and retail trade; the turnover of manufacturing enterprises increased by two percent compared to the previous year.
Compared to 2015, the total costs of enterprises increased three percent, including a five-percent increase in labor costs. The number of persons employed and the number of hours worked increased three and one percent, respectively. In 2016, the business sector's labor productivity on the basis of value added amounted to an average of €21,600 per person employed, i.e. two percent lower than in 2015.
Meanwhile, businesses' investment activity continued to decrease for the fourth year in a row. In 2016, businesses invested €2 billion, which is 12 percent than during the previous year. Similarly to 2015, the largest investments were made primarily in equipment, machinery, buildings and structures. The primary investors were manufacturing, trade and transportation and storage businesses, representing half of the total investments. Compared to 2015, investments in transport equipment and computer systems increased. Other investments decreased, with the biggest decrease registered in investments in the acquisition of buildings and structures.
In the fourth quarter of 2016, businesses sold goods and services for a total of €13.2 billion, a 4-percent increase over the same period in 2015. During this same quarter, businesses invested €612 million, one fifth less than during the final quarter of 2015.
Editor: Aili Vahtla