TOP ESTONIAN ENTERPRISES

Photo: Tuulum
in salary and made the real growth of economy
negative. In 2008 the food products and residential
expenses (14.4% and 15.8% respectively) had
the faster rise in prices than average.
The goods export increased in 2008 in the nominal
price by 5.5% and reached 132.5 billion
kroons. The growth remained smaller than expected
and this also partly due to the world’s
economic crisis. On the other hand, the rise in
price of labour and others caused the rise in
price of export (export price index 4.2%) which
decreased our competitiveness at the foreign
markets. The companies of the processing industry
exported 54% of its production which is
3% points less than in 2007. The goods were exported
to 160 countries, whereby the main target
countries were still Finland, Sweden and
Russia. The percentage of the countries of the
European Union in export was 70%. The export
of goods was greatly based on the imported raw
material and half-products which is proven by
the fact that the major export group was again
the plant and equipment, by making about one
fifth of the export sales.
The goods import in 2008 made total of 169.9 billion
kroons by decreasing 4.9% compared to the
previous year (in nominal prices). Thanks to the
de crease of import the balance sheet of the trade
in goods considerably improved which has been
in big minus through the years. Now the deficit
made 37.4 billion kroons which is lower of the
record of 2007 by 15.8 billion kroons. The highest
negative balance sheet was in the trade of mineral
products (about 12 billion kroons). At the same
time the highest positive balance was in the trade
of wood and wood products (about 7 billion EEK).
The balance sheet of services was traditionally
positive in 2008, whereby both export and import
increased. The services were exported for
55 billion kroons (in 2007 50 billion kroons) and
imported for 38 billion kroons (in 2007 35 billion
kroons). The positive balance sheet of services
decreased in its turn the chronic deficit of current
account which now made 23.4 billion
kroons, i.e. 9.4% as to the GDP (in 2007 43.5 billion
kroons and 18.2%).
The fast increase in salaries in 2007 (20.5%) expressed
the after-effect also on the salary of
2008 (adjustment between the fields of activities).
Regardless of the economic recession the
average salary increased to 12 818 kroons according
to the initial data, i.e. 13.1%. The 10.4%
rise in consumer prices also had some impact
on the faster rise in price than labour productivity.
As a result of the latter the real salary increased
by “only“ 2.7% (13% in 2007).
The real estate market had the major fall already
in 2007 (the number of transactions fell
by 17%) which promised to hope that in 2008 we
can already talk about the stabilization of the
market. This was not the case and now we can
state that the bottom was still far in IV quarter
of 2007. The economic crisis also surely added
to the continuing fall. In the year ended 34.4
thousand notarised real estate transactions
were concluded with the total cost of 33.9 million
kroons. It should be noted that in 2006 and
2007 60.2 and 50 thousand transactions were
concluded respectively. Thus the shrinking of
the real estate market in 2008 was even more
intensive than in 2007. The latter is confirmed
also by changing of the average cost of real
estate transaction – if in 2007 this was 1170
thousand kroons, then in 2008 985 thousand
kroons, i.e. 16% less (in 2007 the fall in the cost
was 4.5%).
The expansion of the loan market continued in
2008, but considerably slower than in 2007. The
total loan portfolio of the commercial banks was
260.1 billion kroons at the year end, by increasing
20.6 billion kroons, i.e. 8.6% with a year. A
year earlier the relevant numbers were 62 billion
kroons and 35%. The best times of expansion
of the loan market had passed this time.
The loan balance of the citizens (without leasing)
increased 120.7 billion kroons by the year
end, being 109 billion kroons a year earlier. The
loan growth decreased approximately three
times compared to 2007 (28 billion kroons). In
the year ended the deposits of the citizens increased
6.1 billion kroons in the banks and
made total of 59.8 billion kroons at the year end.
The deposits of the citizens make about half of
their loan portfolio and 2/3 of their annual salary
fund.
The activities of the companies in 2008 are described
by the following data: industrial production
(volume index) fell by 6.5%, retail of
goods (volume index) decreased by 3% and the
cost of construction works carried out with own
forces in current price decreased by 9.1%. As to
the industry and trade the second half-year was
considerably worse than the first.
It could be added that the balance of payments
of 2008 with 10.3 billion kroons and the state
budget with 5.2 billion kroons remained in
minus.
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