Analytics, Banks, Estonia, Financial Services, Markets and Companies

Also spending by Estonian residents on entertainment and tourism has grown somewhat in recent months.

Where in April consumers in Estonia spent almost 90 percent less money on travel than in the same month a year ago, in July spending in that sector had recovered to a certain degree and the amount spent was smaller by 40 percent than in July 2019, the bank announced on Wednesday.

Also spending on entertainment has begun to recover, being 17 percent lower in July than in the same month last year.

The amount spent by Estonian residents in cafes and restaurants meanwhile was one percent bigger than a year ago.

Lennart Kitt, head of client analysis and data science for the Baltic states at SEB, said that even though the level of spending by Estonian consumers has returned to usual in many fields, this does not necessarily mean business returning to usual for companies, as spending by foreign tourists plays a big role in tourism, accommodation and catering. 

Kitt also said that while the recovery of Estonians' readiness to consume definitely is a positive sign, it is also certain that based on this data alone it is not possible to speak of a full recovery of the economy as low business activity during the tourism season also affects other companies linked to the travel sector. 

Kitt observed that at the beginning of this year, a solid upward trend could be observed in the volumes of the entertainment and catering business. 

"In the field of entertainment, spending by residents grew by 24 percent February versus February, and the rate of growth in the catering sector for the same period was 17 percent," he  said. 

Spending in these sectors decreased by almost one-third starting from March, and a drop of 65 percent was registered for April. 

One the other hand, people have begun to spend less on design, home refurbishment and  interiors. Where in June residents' expenditures on home and garden improvement were 20 percent bigger than a year ago, in July spending on these items was bigger by just 10 percent.