Estonia Dodges Eurozone Industrial Slowdown
Although the Purchasing Managers Index fell to 50.8 in July - its lowest in two years - analysts and business owners aren't worried yet that the slowdown of the Eurozone's industrial production is a threat to the Estonian economy.
In June the index stood at 53.2, reported Postimees.
According to Koidu Kask, head of the board at IPA, an Estonian electronics producer, the number of orders coming in from the Eurozone has remained strong. "If there is to be a decline, then it would affect us for sure because the vast majority of our outsourced production goes to the European Union," he said.
Outsourcing, which would be most directly affected by the Eurozone recession, only comprises a small part of Estonian industry, according to Rita Raudjärv from Statistics Estonia.
"Most of the outsourcing goes to Sweden anyway, which is not part of the Eurozone," Raudjärv added.
Ingrid Teesalu