Economic Commentary: Growth in goods exports driven by re-exports

TALLINN - Estonia's export of goods grew by four percent year-on-year in January, primarily driven by re-exports - the intermediation of goods from other countries - which increased by 13 percent, said Mario Lambing, chief analyst at the strategy department of the Ministry of Economic Affairs and Communications.

According to Lambing, the growth in re-exports was mainly due to precious metals and mineral products. "For gold and coins, the export value was boosted by both higher prices and increased volumes, while the export of mineral products grew mainly from the sale of natural gas and electricity to neighboring countries," he noted.

Meanwhile, the export of goods of Estonian origin decreased by one percent year-on-year. "Nevertheless, exports from the largest commodity group, machinery and equipment, grew by a couple of percent," Lambing said.

Exports of telecommunications equipment fell below the previous year's level. While sales to the United States were lower than a year ago, exports to the country in January 2026 reached their highest point since the US imposed additional tariffs in April 2025. The decline in telecommunications equipment exports was offset by various other machinery and equipment.

The export of wood products declined, primarily due to a decrease in unprocessed wood and plywood. Exports of unprocessed wood have been on a downward trend since 2025. Meanwhile, exports of several other wood products have grown, with the sale of wood pellets showing the largest increase.

Growth in the export of miscellaneous manufactured goods continued to be driven by prefabricated wooden buildings. In January, sales of these products increased the most to Norway, the Netherlands, and Finland. However, volumes in this commodity group can fluctuate significantly from month to month due to large transactions. At the same time, among major industrial products, exports of furniture and mattress bases decreased.

Among products of Estonian origin, the export of plant-based products, including wheat and oats, saw the largest growth. For this commodity group, however, changes often depend on the timing of shipments. The steepest decline was seen in mineral products, particularly shale oil and peat.

According to Lambing, the confidence of industrial enterprises remained stable at the beginning of the year. "Industrial confidence in January-February was similar to the same period last year, and the effects of the war in the Middle East may manifest in foreign trade with a certain delay," he added.