Estonian business sector sees drop in profits in 2016

The Estonian business sector earned 2.7 billion euros (2.86 billion U.S. dollars) in aggregate 2016 profit, which was a 10 percent drop from a year before, according to the data released by the national statistics office on Monday.

The Estonian business sector saw its profit decline for a second consecutive year in 2016, with most areas of business activity reporting smaller profits than in 2015.

While companies representing the trade and energy industries generated the largest share of the business sector's 2016 profit, manufacturers, real estate companies, transportation and warehousing enterprises had the biggest reducing effect on the business sector's overall profits.

The manufacturing industry's profit shrank by a third year-on-year as the profits of export-oriented producers of fuel oil, metal articles and timber dwindled.

Estonian companies' aggregated sales of goods and services rose 2 percent against 2015 to 50.2 billion euros last year, with creative industries, entertainment and recreation showing the strongest growth.

Trade turnover grew 4 percent, mostly thanks to higher sales shown by dealers of motor vehicles and retailers. The annual turnover of Estonia's manufacturers grew 2 percent year-on-year.

The Estonian businesses' total costs rose 3 percent in 2016, with labor costs climbing 5 percent. Their investing activity declined for the fourth straight year in 2016. Like a year before, investments were made mainly in equipment, machinery and buildings. (1 euro = 1.06 U.S. dollars) Endit