Estonia Industrial Output Falls to 4-Month Low

Industrial production in Estonia fell 0.5% year-on-year in February 2026, reversing from a nine-month high of revised 5.8% in the previous month, and marking the lowest level since October 2025. Output declined in manufacturing (-1.1% vs 2.9% in January), weighed down by food products (-5.3%) and electrical equipment (-9.5%). Activity growth also slowed sharply in mining and quarrying (1.3% vs 10.7%), and electricity, gas, steam and air conditioning supply (3.1% vs 21.7%). In addition, in the energy sector, electricity production fell by 3.8% in volume terms, measured in megawatt-hours, while heat production rose by 10.2% in February year on year, as winter temperatures were lower than normal. On a monthly basis, industrial activity fell by 0.7% in February, following a revised 1% decline in the preceding period.

Industrial production in Estonia grew by 5.9% year-on-year in January 2026, accelerating from a slightly upwardly revised 1.8% rise in the previous month. This marked the fastest growth since April last year, driven by output growth in all three industrial sectors. Volume of manufacturing production (3.1% vs 1.8% in December 2025) increased for the third month in a row, mainly due to increases in the production of wood processing and metal products, the shares of which are among the largest in the sector. Additionally, the energy sector climbed 21.7%, rebounding from a 6.5% drop in the prior month, driven by higher volumes of electricity sold, both for end-use to companies and institutions and to household consumers. Mining and quarrying also continued to rise, although at a sharply slower pace (10.7% vs 66.4%). On a monthly basis, industrial activity declined by 0.9% in January, the same pace as in the preceding period.

Industrial production in Estonia rose by 0.2% year-on-year in December 2025, easing from a downwardly revised five-month high of 3.3% in the previous month. Manufacturing output growth moderated (0.4% vs 4.5% in November), largely weighed by declines in textiles (-8.4% vs 2.5%), wearing apparel (-10.5% vs 13.8%), coke and refined petroleum products (-22.6% vs 11.1%), basic metals (-7.2% vs 0.6%), and motor vehicles, trailers, and semi-trailers (-3.1% vs 57.7%). Meanwhile, output in mining and quarrying surged to 61.9% from 10.0%, while electricity, gas, steam, and air-conditioning supply fell at a softer pace (-6.5% vs -8.7%). On a monthly basis, industrial production fell by 1.8% in December from a near two-year high of 6.0% in the prior period.