2012 good for Estonia, slightly stained

Argo Ideon
, poliitika- ja majandusanalüütik
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Illustration: Statistikaamet

In economic development, 2012 was favourable for Estonia in nearly all areas – with growth a little slower than in 2011, however. The 3.2 rise in GDP would be envied by most European countries.

European Union’s 2012 GDP shrinking by 0.3 per cent, eurozone did even worse with a drop of 0.6 per cent. Estonia was outdone by Latvia’s whopping 5.6 per cent growth. It is worth remembering, however, that the recent Latvian crisis was deeper, with aid from international institutions needed to balance the books.

Against European stream

Thus, Estonia was swimming against the overall economic stream, nominally reaching its highest GDP ever. In real terms, however, recovery from the 2008-2009 crisis will take longer. Companies’ finances improved, productivity of labour went up, foreign trade was greatly enhanced.

For Estonia, 2012 was especially positive when it came to labour market development, covered in detail by fresh statistical data. With 16.9 per cent unemployment rate in 2010 (at that, close to 20 per cent in 1st quarter), last year it was down to 10.2 per cent.

Thereby, from peak of crisis, unemployment is down by almost a half. Estonia’s last year’s unemployment was under EU average; out labour situation being the more remarkable as in Europe, the trend is rather towards more scarcity of jobs.

Last year, 624,400 inhabitants of Estonia were employed. In 2011, it was 609,100. At that, amount of jobs did not significantly increase in industry and construction; rather, new jobs were being created in such areas as transport, education and communications.

Although wage rise reached not everybody, the average gross monthly salary went up by 6.3 per cent, last year. In first quarter this year, it was €900. As stated in Statistical office yearbook, the increasing wages do not equal better purchasing power, as price rises come into play. Even so, it has to be admitted that real wages have moderately grown.

As unemployment dropped, les people were on unemployment benefits.

Regrettably, Estonia’s price rise was high above European average last year. According to Eurostat, using comparable methodology, Estonia averaged a 4.2 per cent price rise, while EU average amounted to 2.6 per cent.

In EU terms, only in Hungary did prices rise faster than in Estonia. To get a deeper understanding of Estonia’s and Eastern European neighbour’s price differences, read In search of a cheap European country by Mikk Salu, published in Postimees in English, on July 31st.

For food, every household member in Estonia paid €78.9 a month, in 2012. Residence costs for household member increased to €51.4, having been €47.5 in 2011.

Exodus still on

Finding fault – Estonia’s population shrank and, as at January 1st, we had slightly over 8,000 people less year-on-year. Statistics point to negative natural growth due to marked decrease in births. Last year, there were about 2,000 births less as in 2011. 11,000 people left Estonia, 4,000 arrived.

At the same time, we may rejoice over the increased life expectancy, still under many in EU. In 2011, male Estonians were expected to live 71 years, 81 years for ladies.

Birth rate is on the decrease, however. Also, there are less Estonians amongst babies born in Estonia; mothers giving birth are older, on average. Last year, more marriages were entered than in 2011; however, divorces were more numerous as well.

The amount of Estonia’s pensioners is increasing. Last year, 1.2 per cent were added, equalling 409,000 pensioners in Estonia, as at start of this year – totalling 31.8 per cent of the population. Statistics show that amounts of pensioners vary regionally: in Ida-Viru County, Põlva County, and Jõgeva County, for instance, pensioners come over 40 per cent. In 2012, Estonia’s average pension was €276.6 – 2.2 per cent higher than in 2011.

Fresh poverty figures relate to 2011, in the yearbook; with 17.5 of inhabitants of Estonia being «comparatively poor». That equalled 2010. Comparatively poor were those with under €299 of income a month. Poverty is more widespread among women. Of single parents, almost every third is comparatively poor.

2012 brought less registered crimes than 2011; however, at closer look the picture is less positive: there is a troubling increase of offences against persons. According to the yearbook, 2012 had 59 per cent more offences against persons than 2003. As compared to 2011, there is a marked increase in rapes and abuse.

Murders have doubled, manslaughter has come down by a fifth. Numbers of prisoners decreased, this being a longer trend. Life sentences were served, last year, by 36 convicted persons.

These past years, increased numbers of drug offenders end up behind bars. While in 2008, Estonian prisons had 406 of such, last year showed 542. The amounts of jailed thieves, however, significantly decreased last year

Culture up

To counter the crime data, it is useful to glance at cultural development. Last year, 46 full-length movies were finalised last year – a record. Indeed, this was becoming of 2012, marking the 100th anniversary of Estonian film.

Of these, 13 were feature films. The number of Estonian movies shown in cinemas also hit a post-1991 record – 332. Last year, Estonian films were shown in 28 cinemas i.e. less than in 2011.

Theatre life was more active than before with amounts of productions, shows and spectators increasing. Year-on-year, more books were published. Newspapers published amounted to 130 titles, 93 of which came in the Estonian language. Even so, in 2011 the amount of Estonian language newspapers was 97. Museum visitors were more numerous, by a tenth, than in 2011.

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