The global economic crisis aff ected considerably Estonian manufacturing industry during 2008–2009. In 2010, the production began to recover rapidly thanks to strong exports. The increase in industrial production continued until the end of 2011. In the first half of 2012, the speed of increase slowed down and the total production remained on the level of the previous year despite the fact that the production in the manufacturing of electronics recovered at the end of the year.
The main reasons for the slowdown were the high comparison basis and gradual decrease of external demand. In 2012, the share of external market in the sales of industrial production was more than 70% as in the previous year. The growth in exports was almost 4% compared to the previous year. The demand on the domestic market remained slightly smaller in 2012 compared to 2011 – in 2012 1% less output was sold on domestic market than a year earlier.
In 2012, the industrial production exceeded the level of the previous year almost in half industrial branches. The growth of production was positively infl uenced by branches of industry holding larger shares – manufacture of wood and wood products, food products, and manufacture of electrical equipment where the production increased 2%, 1% and 5%, respectively, compared to the previous year. The growth of production was affected negatively by the decrease in the production of fabricated metal products, chemicals and chemical products, furniture and motor vehicles.