Business, Competition, Estonia, Good for Business

International Internet Magazine. Baltic States news & analytics Monday, 24.09.2018, 15:11

Institute: Competitiveness of Estonian businesses has improved

BC, Tallinn, 11.07.2018.Print version
The situation of the Estonian economy remains strong for the fifth quarter running, with the score given to it by experts at the Estonian Institute of Economic Research (EKI) reaching 88 points on the 100-point scale, higher than the scores for the other Baltic countries and the Nordic countries, and the competitiveness of Estonian businesses has improved as well, cites LETA/BNS.

According to the experts, the situation of investments and private consumption remains positive, EKI said. The competitiveness of Estonian businesses has improved during the past three months, with businesses in the beverage industry and paper industry seeing the biggest increases in output ahead. Businesses are also expecting an increase in export orders. Insufficient inventories are an indicator of high demand as well, according to EKI.


Estonia ranked 31st on the IMD international scoreboard of competitiveness of nations, one place lower than last year. At the same time, the Estonian score of 78.5% compared with the United States, the top ranked nation, is the best result of all time. Of Estonia's major trading partners, Sweden ranked 9th, Finland 16th, Lithuania 32nd, Latvia 40th and Russia 45th. The IMD rankings are based on statistics for 2017 and a survey of entrepreneurs conducted at the beginning of 2018. The IMD survey, carried out in 63 countries worldwide, is compiled in Estonia by EKI.


"Demand at Estonia's main trading partners remains strong and expectations as regards the future positive," said Priit Tinits, head of economic analysis at the Estonian Ministry of Economic Affairs and Communications.


Tinits said that from the end of July, Estonian companies will be able to seek a subsidy for participation in fairs abroad from Enterprise Estonia that will enable them to take part in specialist fairs with a separate stand rather than as part of a joint stand of Estonian businesses.


"The support will help Estonian businesses strengthen their position on export markets also when the major powers and the European Union start to regulate global trade by means of imposing protective tariffs," the official said.


The indicator of the economic standing of households is at an all-time high since the consumer barometer was introduced in 1991. The ratio of families able to save money, 53%, is higher than the ratio of families able to make ends meet, which is 43%.


Consumers' feeling of security depends largely on the social group they come from. Feeling the most secure are 16 to 29-year-olds and feeling the most insecure over 65-year-olds.

The situation of the Estonian economy is expected to continue improving in the second half of the year, according to the economic climate indicator, which stood at a higher level in June than in March.

 






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