Analytics, Baltic Export, Estonia, EU – Baltic States, Foreign trade , Markets and Companies

"According to exporting Estonian companies, their competitiveness on the European Union market has worsened in the last year, but competitiveness outside the EU has improved," Mertsina said in a press release.

But entrepreneurs at that see ever improving possibilities for export and their export orders have also continued on an upward trend. "The Purchasing Managers Index (PMI) of the eurozone in January rose to the highest rate in the last 12 years, which also indicates that foreign demand continues to be strong," Mertsina said.

According to Mertsina, the export growth tempo this year will likely decelerate but growth will nevertheless continue. "The growth in the import demand of Estonia's trade partners should decelerate slightly this year, but this will continue to offer our companies good possibilities for export," he said.

Mertsina said that the growth in the labor expenses of Estonian companies has stabilized, but it is still very high with respect to their revenue. "Productivity growth has improved and its difference with wage growth has closed, but this has only decelerated the drop in the price-based competitiveness of the companies in relation to our trade partners," he said.

According to preliminary data, Estonia's total export growth in the EU last year was among the bottom third compared to other countries. Export of goods grew the fastest in Lithuania and Finland. The main destination countries of goods of Estonian origin are Finland, Sweden, Germany and Latvia -- these countries made up approximately half of the entire export of goods.

The market share of Estonian goods decreased in Finland, Sweden and Latvia last year, but increased slightly in Germany. In Sweden, the decrease in Estonia's market share was aided by the drop in the export of mobile devices, while the cause in Latvia was the decrease in the export of electricity. The market share of Estonian goods on the EU market has also decreased slightly.

Statistics Estonia announced on Friday that the exports of goods in Estonia increased by 8 percent and imports by 9 percent in 2017, while the exports of goods from Estonia amounted to 12.8 billion euros and imports to Estonia to 14.7 billion euros at current prices, which means that trade in 2017 was at a record level.