In 2016 the total profit of the business sector decreased

Posted on 27 February 2017, 10:00

According to the preliminary data of Statistics Estonia, in 2016 the total profit of the business sector was 2.7 billion euros, which was 10% less than the year before. The business sector’s total profit decreased for second year in a row.

Compared to 2015, the total profit decreased in most economic activities. The biggest contribution to the total profit was made by trade and energy enterprises. The growth in the profit of the business sector was negatively affected mainly by manufacturing, real estate and transportation and storage enterprises. The profit of manufacturing decreased by a third compared to 2015, mainly due to the decrease in profits in the export-oriented manufacture of fuel oil, metal products and wood.

In 2016, enterprises sold goods and services for 50.2 billion euros, which was 2% more than the year before. The biggest growth was in arts, entertainment and recreation. The turnover of trade enterprises, which have the biggest share in the total turnover of the business sector, increased 4%, affected mostly by an increase in the turnover of motor and retail trade. The turnover of manufacturing enterprises increased 2% compared to the year before.

Compared to 2015, the total costs of enterprises increased 3%, including 5% increase of labour costs. The number of persons employed and the number of hours worked increased 3% and 1%, respectively. In 2016, the labour productivity of the business sector on the basis of value added amounted to an average of 21,600 euros per person employed, i.e. 2% lower than in 2015.

The investment activity of enterprises continued to decrease for the fourth year in a row. In 2016, enterprises invested 2.0 billion euros, which is 12% less than the year before. Similarly to 2015, the largest investments were made mainly in equipment and machinery and buildings and structures. The main investors were manufacturing, trade, and transportation and storage enterprises with a half of the total investments of enterprises. Compared to 2015, the investments in transport equipment and computer systems increased. Other investments decreased, with the biggest decrease registered in investments in acquisition of buildings and structures.

In the 4th quarter of 2016, enterprises sold goods and services for 13.2 billion euros, which was 4% more than in the same period of 2015. In the 4th quarter of 2016, enterprises invested 612 million euros, i.e. a fifth less than in the 4th quarter of 2015.

Total profit of the business sector, 2002–2016

The statistics are based on the questionnaire “Economic activity, quarter”, the submission date of which was 20 January 2017. Statistics Estonia published the quarterly summary in 24 working days. For the statistical activity “Financial statistics of enterprises (quarterly)”, the main representative of public interest is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting the statistical activity.

Due to maintenance, Statistics Estonia’s and census websites will be temporarily unavailable on 23  April between 16:00 and 17:00. We apologize for the inconvenience.