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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 07:28

The share of the service sector has grown in all Estonian counties

Robert Müürsepp, Statistics Estonia, 14.12.2017.Print version
According to Statistics Estonia, 64%, i.e. the majority of the value added generated in the Estonian economy in 2016 was created in Harju county. The share of the service sector continues to grow, having increased in 2016 by more than 2 percentage points in most counties.

In 2016, the gross domestic product (GDP) of Estonia reached 21 billion euros at current prices. Harju county’s contribution amounted to 13 billion euros, 11 billion euros of which came from Tallinn. Harju county was followed by Tartu county and Ida-Viru county, the shares of which in Estonia’s GDP stood at 10% and 6%, respectively. Hiiu and Põlva counties had the smallest shares in 2016 – both contributed less than 1% to the Estonian GDP.

 

70% of the gross value added of Estonia was created in the service sector in 2016. The influence of the cities of Tallinn and Tartu, in particular, resulted in Harju county and Tartu county having the largest share of services – 78% and 70%, respectively. The growth in the share of the sector was the fastest in Jõgeva, Põlva and Järva counties. Nevertheless, it cannot be said that the rest of Estonia is catching up with Harju and Tartu counties, as the majority of the development in the service sector is still taking place in the cities of Tallinn and Tartu.

 

Industry and construction accounted for 27% of the gross value added of Estonia in 2016. As the share of the service sector has increased, the share of industry and construction in the value added has been declining for several years in most counties. The decline has been the fastest in Ida-Viru county – while in 2014, industry and construction made up 58% of the total value added of the county, it contributed 50% in 2016. The second fastest decline in the share of sector has taken place in Saare county where it has gone from 40% to 36% in the same period. Over the past two years, the share of the industry and construction sector in the value added has shown significant growth in three counties – Rapla, Viljandi and Võru.

 

The agricultural sector accounted for 3% of the gross value added of Estonia in 2016. This sector had the largest share in Jõgeva county (16%). The rise of the service sector has reduced also the share of the agricultural sector in the value added of counties. In addition, African swine fever and low crop yield have been of concern in recent years. As a result, the share of the value added of the agricultural sector has declined in all counties. The fastest to decline have been Jõgeva, Põlva and Lääne counties.

 

In 2016, GDP per capita was 16,035 euros, which is 557 euros more than a year earlier. GDP per capita was the highest in Harju county – 145% of the Estonian average. Harju county was followed by Tartu and Pärnu counties, where GDP per capita amounted to, respectively, 94% and 67% of the Estonian average. The lowest GDP per capita was recorded in Põlva county – 41% of the Estonian average. In 2016, the gap between Harju and Tartu counties and the rest of the country kept widening. The main reason for this is the fast growth of the cities of Tallinn and Tartu.

 


Agricultural sector – agriculture, forestry and fishing.

 

Industry and construction – mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply; water supply; sewerage, waste management and remediation activities; construction.

 

Service sector – wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities; information and communication; financial and insurance activities; real estate activities; professional, scientific and technical activities; administrative and support service activities; public administration and defence; compulsory social security; education; human health and social work activities; arts, entertainment and recreation; other service activities.

 

For the statistical activity “Regional GDP”, the main representative of public interest is the Ministry of Finance, commissioned by whom Statistics Estonia performs this statistical activity.






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