Growth slowing, but still steady

  • 2007-06-27
  • By Mike Collier

TALLINN - According to Statistics Estonia, May 2007 industrialproduction in Estonia continued to grow, but at a decreasing rate,prompting fears that the economy could be slowing down.

Seasonally adjusted monthly industrial production in Estoniaincreased by just 1%.

Compared to May 2006, industrial production increased 6% inindustry as a whole and 5% in manufacturing. Most countries would besatisfied with such figures, but with the Estonian economy used tofar greater jumps - even at the beginning of the year, industrial production as awhole increased by around 9% - it does seem that growth could be approaching a peak.

In May 2007 compared to May in the previous year, the productionof food, electrical machinery and building materials contributed to the increase in the production of manufacturing. In thecase of building materials and chemical products the growth wasmainly influenced by the increase in domestic production inconnection with the continued rapid growth in the constructionsector.

Electrical machinery also contributed strongly in both thedomestic and export markets, recording an impressive 53 per centgrowth figure.

In contrast, production in the timber and metal industries wasdown on last year's figures, due to the lack of raw materials and thestabilisation of output in comparison with the rapid growth duringrecent years.