Entrepreneurs' assessments of export competitiveness have improved
Estonian entrepreneurs have reported improved assessments of their export competitiveness due to increased demand and expanding target markets.
Recent commentary from Mari Rell, an economist at the Bank of Estonia, highlights a notable improvement in entrepreneurs' perceptions of export competitiveness at the beginning of the year. The resurgence of global trade towards the end of last year has led to an increase in demand from Estonia's trading partners for its goods and services, contributing to a boost in both export and import activities. In the fourth quarter alone, foreign trade turnover grew by 5.2%, with exports rising by 6.6% and imports increasing by 3.8%. The commentary emphasizes that throughout the past year, entrepreneurs have been actively seeking new markets for their goods, resulting in an expansion of the range of export destinations. The growth in goods exports has been broad-based, with a particularly fast increase in exports to Central European countries. Polish and German markets saw the most significant growth, alongside increases in exports to Lithuania. Despite these positive developments, Rell cautions about ongoing uncertainties due to new military tensions and fuel prices, which could impact the economic landscape. Although Estonia's current account remains in surplus, these external factors have the potential to introduce volatility into the exporting sector, necessitating vigilance among businesses as they navigate this changing environment.