Estonia's ICT sector exports rose to €3.6 billion last year
Last year, Estonian information and communication technology companies exported €3.6 billion worth of services, the majority of which were connected to software development.
Data from Statistics Estonia show the export volume of the ICT sector grew by approximately 10 percent year-on-year comparison and accounted for 12 percent of Estonia's total export of goods and services.
About 80 percent of the exports were linked to software development.
Bank of Estonia Economist Mari Rell said although Estonia's economic situation is generally difficult, the ICT sector has quite good results.
The growth stems from the fact that these services are increasingly needed in everyday work.
"In recent years, we have seen an upward trend in exports of ICT services. This is both because companies are offering more of their services abroad and because new companies are starting to export. While there have been difficulties with exports from other sectors, the ICT sector's share has increased. The share of ICT in exports has recently been between 10 and 15 percent," Rell said.
Doris Põld, CEO of the Estonian Association of Information Technology and Telecommunications, said the sector as a whole has not set a specific numerical goal, but the overall plan is to increase sales abroad.
"Of course, we will monitor the share of exports in the sector's total turnover, and our aim is that it will still continue to grow. It is money that comes into the economy from exports, not the money that we keep circulating here. At the moment, exports as a percentage of the sector's total turnover are around 53 percent, and we can see that this could certainly rise," Põld said.
She said companies are very interested in exporting and new markets are being explored. Other sectors are looking for ways to increase efficiency, both in Estonia and elsewhere.
"Here, the ICT sector is the one that can help others and support them in their more efficient delivery. At times, investments in digitization have been a necessity for survival in other sectors, and this in turn affects the economic results of companies in our field. The development of artificial intelligence can certainly provide additional impetus in the future," Põld said.
Estonia is home to more than 9,000 ICT companies. Their annual turnover is close to €8 billion, which is approximately 8 percent of GDP. The sector employs more than 37,000 people or 5 percent of the country's workforce.
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Editor: Mait Ots, Helen Wright
