Entrepreneurs’ profit decreased by a fourth in the previous year

Intense competition on domestic market and decreased demand on external market lead enterprises to lower profits. Compared to 2007 profits decreased in most economic activities, only transport, storage and communication and fishing activities were capable of increasing their profits. Agriculture and health and social work sectors were in loss. In activities with the largest share — in wholesale and retail trade and manufacturing — profits decreased by 33% and 22%, respectively.

In 2008 the net sales of enterprises totalled 641 billion kroons and it decreased by about 2% compared to the previous year. In trade and transport activities the net sales decreased by 5% in both activities and in construction the net sales decreased by 6% compared to the previous year. The largest decline was in forestry, where lack of demand and lowered timber prices reduced net sales by 17%.

In 2008 enterprises invested 37 billion kroons, which is 11% less than in 2007. The rapid fall of real estate prices reflects the situation of demand on the market. Investments in land decreased by a half compared to 2007.

In the 4th quarter of 2008, the enterprises’ total profit was about 6 billion croons. The total profit was as low last four years ago in the 4th quarter of 2004. Compared to the 4th quarter of 2007 the total profit decreased 51%.

In the 4th quarter the net sales of enterprises totalled 149 billion kroons, which is 13% less than in the same period a year ago.

In the 4th quarter enterprises invested 9.3 billion kroons, i.e. 2.9 billion less than in the 4th quarter of 2007. Investments decreased in all tangible asset objects.

Total profit of enterprises, 1st quarter 2004 – 4th quarter 2008