Profit of Estonian business sector up 5 pct on year to EUR 2.8 bln in 2017

TALLINN – According to the preliminary data of Statistics Estonia, the total profit of the business sector in 2017 was 2.8 billion euros, which is 5 percent more than the year before.

Compared to 2016, total profit increased in most economic activities. Manufacturing and transportation and storage enterprises made the biggest contribution to the total profit of the business sector. The growth in the sector's profit was negatively affected mainly by real estate and wholesale enterprises. The profit of manufacturing increased by approximately a third compared to 2016, mainly due to an increase in profits in the manufacture of electronics, fuel oil and food products, Statistics Estonia said.

In 2017, enterprises sold goods and services for 55 billion euros, which is 10 percent more than the year before. The biggest increase occurred in the turnover of enterprises specialising in water supply, sewerage, waste management and remediation activities. The turnover of trade and manufacturing enterprises, which have the biggest share in the total turnover of the business sector, increased 8 percent and 5 percent, respectively.

Compared to 2016, the total expenditure of enterprises increased 10 percent, including a 9 percent increase in labor costs. The number of persons employed and the number of hours worked increased 3 percent and 2 percent, respectively. In 2017, the labor productivity of the business sector on the basis of value added amounted to an average of 22,600 euros per person employed, that is 5 percent more than in 2016.

In 2017, enterprises invested 2.4 billion euros, which is 15 percent more than the year before. As in 2016, the investments were made mostly in machinery and equipment, and buildings and civil engineering works. The main investors were manufacturing, transportation and storage, and trade enterprises, accounting for nearly a half of the total investments of all enterprises. Compared to 2016, all investments increased, with the biggest increase registered in investments in computer systems.

Enterprises sold goods and services for 14.5 billion euros in the fourth quarter of 2017, which is 10 percent more than in the same period of 2016. In the fourth quarter of 2017, enterprises invested 672 million euros, that is a tenth more than in the fourth quarter of 2016.