Baltic economies continue freefall

TALLINN - The latest economic data from the Baltic stateshas revealed that the countries are continuing their fall into stagflation. Estoniahas so far been hit the hardest as it became the first country in Eastern Europe to dip into a recession following years of high growth driven by credit. The country registered negative GDP alongside a double digit inflation rate. The decrease in the GDP was mostly influenced by the weak domestic demand and at the same time by the decrease in exports of goods and services, the national Estonian statistics service said in a report on the country s GDP growth. Estonia s inflation rate remained in the double digits in August at 11 percent. The statistics agency said a 17.1 percent increase in food prices was a main contributor to the still high inflation rate.

Estonian inflation slows in August

Prices climbed 0.1 percent from the previous month and 11.0 percent from a year earlier, the state statistics office said on Friday. That marked a slowdown from July when prices rose 0.7 percent on the month and 11.1 percent on the year. Estonia has been battling double-digit inflation for much of 2008 due to higher oil prices and a wage-price spiral in the once booming economy. The inflation rate hit a 10-year high of 11.4 percent in April and touched the same level again in June. Its retreat from those peaks has prompted the government and the central bank to expect that inflation has passed its peak but the Estonian finance ministry still expects the inflation rate to remain in double digits in the near term. Yearly inflation will stay above 10 percent in the coming months, it said in a statement, adding it expected inflation to fall after the end of the year due to base effects.

Transaction activity on Tallinn real estate market had fallen by 35 in a year

Analyst of Uus Maa Kinnisvarabüroo Annika Jakobson stated in the overview of the real estate market that during the summer the market was quiet in Tallinn the transaction activity had fallen by 35 in a year, writes Äripäev.ee. The prices of transactions fell by 15-20 in a year, in case of individual houses even a fall of up to 40 has been noted. In spring of 2007 when the prices of flats peaked in Tallinn, a 2-bedroom flat in a very good condition in a block of flats at the Mustamäe city district cost 1.1 1.5 million kroons while at the moment flats with similar conditions could be bought for 0.95-1.0 million kroons. It is estimated that the next quarter will see a similar situation in Tallinn and in the Harju County.

Estonian July industrial production down 5 pct y-o-y

According to Statistics Estonia, in July 2008 the industrial production decreased 5 pct compared to July of the previous year. The decrease in the industrial production was essentially affected by a continuous decrease in electricity production compared to July of the previous year, the production of electricity decreased 29 pct. As before, the decrease in electricity production was caused by a partial replacement of own production with the imports of electricity in July nearly one third of the consumed electricity was imported. The production of heat decreased 2 pct compared to July of the previous year. In manufacturing, the production decreased 0.3 pct. The main reason for this was the decrease in orders, first of all on the internal market. According to the information of the Estonian Institute of Economic Research, more than half of enterprises mentioned insufficient demand as the key factor hindering the growth.

Latvia tops Baltic Olympic battle

RIGA - Eight competitors tested their pedals, waiting for the signal to start the tense winner-takes-all race. It was a historic moment in their sport - the first to cross the finish line would take home the first ever Olympic gold medal in BMX cycling. In the previous heats, Maris Strombergs, Latvia s 21-year-old BMX prodigy, had earned the right to choose which gate he would start from. He chose a fast track and it gave him an immediate edge over the other cyclists. By the end of the first turn, he was well ahead of the competition. His performance was flawless. Strombergs threw up his arms in victory before even crossing the line. He was nearly half a second ahead of the next competitor. I needed the fast lane, and I did it, Strombergs told the Associated Press after his win.

Tallinn s most famous nightclub could go bankrupt

Tallinn s No. 1 gayclub Angel has found itself deep in financial trouble and is losing money. Eesti P 228 evaleht writes that the club that belongs to brothers Peeter and Priit Rebane ended last year with a loss of more than EEK 660,000. The club s total loss is about EEK 2.5 mln. The club s auditor pointed out that the net assets of Heavenly Service Ltd that owns and operates the club are negative by EEK 570,000. Under the commercial law, companies whose net assets make up less than half of their equity must be liquidated or file for bankruptcy. The company owes about EEK 265,000 in taxes with interest. Priit Rebane, one of the shareholders of the club, said that he is not actively involved in running the club.

Estonian Olympian to receive Defense Forces medal

Ants Laaneots is set to give a defense forces special services cross to Tonis Endrekson, the silver medal Olympic rower. Rowing is a very difficult and demanding event. One needs not only physical but also mental endurance, to be able to suffer the pain of exertion at the decisive moment, said 2nd Lt. Imre Tiidemann, commander of the Defense Forces sports group. PFC Endrekson, member of the Defense Forces sports group, will get the special service cross for his successful performance at the Beijing Olympic Games where he won a silver medal in rowing double sculls together with Juri Jaanson. Endrekson will be decorated with the cross next week, the Defense Forces headquarters said. Endrekson passed the compulsory military service at the Parnu Independent Infantry Battalion and has been a member of the Defense Forces sports group since last year.

Tallinn is the city of romance

Not only are tourism board competing with their neighbors they re competing with other cities in other parts of Europe, and the world. In the current economic climate tourism is one of the first things to suffer. It is a luxury after all. Still tourism boards are fighting back with a raft of clever measures to woe customs to the region. Tallinn has its romantic side. Riga, some would say unfortunately, is promoted as a party town. Next year Vilnius is the European Capital of Culture and in 2011 it is Tallinn s turn. Each Baltic capital has its own charm. Riga has its baroque architecture and Tallinn its medieval feel. But let s not forget the smaller cities. This week s Industry Insider is about city promotion. TALLINN - What people don t realize it that Paris is quite dirty, said Amanda Caldwell when asked why she picked Tallinn for her honeymoon.

Estonian song festival

The event is the high point of the 90th anniversary celebrations of the Republic of Estonia. The theme of the festival is exile, resistance and restoration of independence. It commemorates the spontaneous events that took place on a massive scale 20 years ago, popularly known as Ärkamisaeg ( Awakening ), which grew into the Singing Revolution and the subsequent restoration of Estonia s independence in August 1991. More than 140 choirs, totalling over 3000 singers, as well as numerous Estonian musicians and pop stars, will be joined by tens of thousands of spectators for the 6-hour-long festivities. The programme will range from popular national songs, ballads written during the fight for independence, and modern compositions by young Estonian composers. At midnight, the President of Estonia, Toomas Hendrik Ilves, will deliver a speech in which he will draw parallels between Estonia in 1988 and Georgia today.

Gerd Kanter of Estonia won the gold medal in the Men

Poland s Piotr Malachowski was in the lead after the first three rounds with his silver medal winning fling of 67.82m, however Kanter answered with an unbeatable 68.82m throw in the fourth round. Alekna added an Olympic bronze to his medal collection, with his best throw of 67.79m in the fourth round. He won gold at Sydney 2000 and Athens 2004. German Robert Harting placed fourth with 67.09m, and Spanish thrower Yennifer Frank Casanas finished in fifth place with his best of 66.49m. Kanter is Estonia s first Olympic champion in the Men s Discus Throw. The win also marked Estonia s first Athletics medal of the Beijing 2008 Olympic Games. 2008.cn Source http: 7thspace.com headlines 290618 gerd kanter of estonia. html