Analyst: No rapid recovery in exports on the horizon
Exports in Estonia were significantly down in February compared with the same period last year, and while there are some signs of recovery, one analyst has said, the Nordic construction market having practically ground to a halt will make any improvement this year modest at best.
According to SEB analyst Mihkel Nestor, while some sectors have seen growth, rapid recovery is not expected.
Statistics Estonia reported this week that in February, Estonia exported goods worth €1.3 billion, a fall of 15 percent on year.
Imports meanwhile fell by 10 percent, to €1.5 billion.
Over the past few months, however, the picture has become more stagnant.
Estonian companies continue to export primarily to the Scandinavian countries, with 16 percent of all Estonian exports going to Finland alone.
Nestor noted signs that the worst may be over, though recovery will not be a quick turnaround either.
He said: "In some areas, we can even see slight growth, but certainly, there will not be a quick recovery."
"The Nordic markets, whose situation caused this significant drop, are not showing a quick recovery in the construction sector. In Finland, just 300 building permits were issued in January. Numbers this low have never occurred before. Essentially, construction activity has halted, so a larger recovery will not happen this year," Nestor continued.
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Editor: Andrew Whyte, Merili Nael
Source: 'Aktuaalne kaamera.'
