Analyst: Increase in export of local goods shows signs of recovery
The export of goods produced in Estonia in July increased compared with last year. Chief economist at Swedbank, Tõnu Mertsina, says that this points towards a quick recovery from the crisis.
In July, export of goods produced in Estonia compared with July 2019 decreased by only one percent, but this was due to the re-export of the goods, meaning the export of foreign-produced goods. The export of local goods showed signs of recovery carried by the export of disinfectants and shale oil products, ETV current affairs show "Aktuaalne kaamera" reported Wednesday.
Chemi-Pharm, a manufacturer of disinfectants, is working at full speed in three shifts. Compared to the pre-crisis period, their turnover has increased about three times. Exports have also grown by the same amount, with a current turnover of around €1 million per month.
"We can see how turnover is growing. Wheeas last year, we had 17 export countries of destination, then now there's 23 of them, and we are paying attention to markets further away," chief-executive of Chemi-Pharm, Kristo Timberg, said.
The availability of raw materials and, in some cases, a three-fold price increase, has caused difficulties, however.
"In our field of business, there are a lot of tenders and cooperation deals, which at some point don't correspond to what is going on in the material market. We have had to check most of the deals to make them correspond to the current situation," Timberg said.
According to Tõnu Mertsina, the near-term outlook for exports could continue to be positive.
"If we look at the confidence indicators of our trading partners as well as the purchasing managers' indices, which also show economic activity and GDP change and to add the current forecasts, external demand should continue to improve," the analyst said.
All this is however based on the assumption a the new coronavirus wave won't hit the economy again in the way it had done in spring, he said.
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Editor: Roberta Vaino, Andrew Whyte