Foreign trade in services in surplus last year

According to Statistics Estonia and Eesti Pank, in the fourth quarter of 2022, Estonia’s exports of services grew by 12% and imports by 25% at current prices compared with the fourth quarter in 2021. Services were sold to non-residents for a total of 3 billion and purchased for 2.2 billion euros. The balance of foreign trade in services was therefore in surplus by 765 million euros in the fourth quarter, which is 125 million euros less than in the same period a year earlier. In 2022 as a whole, exports of services grew by 31% and imports by 19%.

Jane Leppmets, analyst at Statistics Estonia, said that the slower growth in exports of services in the fourth quarter was partly due to the high reference base. However, exports of services continue to exceed imports, offsetting the negative balance of foreign trade in goods. “If we examine services by type, we see that for the majority of services, we sell more than we buy. Examples include telecommunications, computer and information services, other business services, and transport services, which account for the largest share of our foreign trade in services and which we export more than we import,” Leppmets added.

In the fourth quarter, the most exported services were other business services (incl. other business support services), worth 907 million euros. This was followed by 690 million euros worth of exports of transport services (incl. freight transport services by road), and exports of telecommunications, computer and information services for 676 million euros. Compared with the fourth quarter of 2021, sales of other business services, travel services, and telecommunications, computer and information services to non-residents increased the most.

The top export partner for services in the fourth quarter of 2022 was Finland. The main services supplied to Finland were travel and transport services. Finland was followed by Sweden, with transport services being the biggest export item, and Latvia, where Estonian enterprises exported primarily other business services. The biggest increase occurred in exports to Finland (up by 71 million euros), Latvia (up by 54 million euros), and Lithuania (up by 41 million euros). More travel services were provided to Finland, other business services to Latvia, and transport services to Lithuania.

The main imports into Estonia in the fourth quarter were 680 million euros worth of other business services (incl. other business support services). This was followed by purchases of transport services (incl. freight transport services by sea) with 644 million, and telecommunications, computer and information services worth 416 million euros. Compared with the fourth quarter of 2021, the biggest rise occurred in the imports of other business services, travel services, and telecommunications, computer and information services.

As in exports, the top partner country for imports of services in the fourth quarter of 2022 was also Finland which mainly supplied transport services, other business services, and travel services to Estonia. Finland was followed by Germany, from which mainly other business services were purchased, and Lithuania, with transport services being the largest imports. In the fourth quarter, the biggest rise was recorded in imports of services from Lithuania, France (both up by 38 million euros), and Sweden (up by 32 million euros). Imports of transport services from Lithuania and other business services from France and Sweden grew the most.

In 2022 as a whole, Estonia’s exports of services totalled 10.8 billion euros and imports 8.4 billion euros. Other business services, transport services, telecommunications, computer and information services, and travel services accounted for the largest shares of both exports and imports. Compared with a year earlier, the trade of other business services and travel services grew the most, in both exports and imports. Exports of services were the highest to Finland, Sweden, and United Kingdom. The top countries for imports of services were Finland, Germany, and Lithuania.