Economic growth is continually driven by vigorous exports in manufacturing

news release no 58

Please consider the text in red as correct.

According to Statistics Estonia, by flash estimates, the gross domestic product (GDP) of Estonia increased by 8% in the 1st quarter of 2011 compared to the same quarter of the previous year.

The growth of the value added of manufacturing contributed to the GDP the most. Manufacture of radio, TV and communication equipment and apparatus and fabricated metal products had the biggest impact on the growth of the value added of this economic activity. The value added of manufacturing grew mainly with the support of vigorous exports. At the same time the contribution to the GDP of this economic activity diminished. This made the GDP growth more even in the 1st quarter on account of the increase of the impact of other economic activities.

According to preliminary data, the exports of goods grew by 53% in real terms in the 1st quarter. The exports of radio, TV and communication equipment and apparatus, electrical equipment and fabricated metal products increased the most. The share of the manufacturing output accounted for slightly more than half of the export of goods.

The value added of the general government sector grew after six quarters of decrease. In addition, the GDP growth was substantially influenced by the increase in the value added tax and excise taxes.

According to the preliminary data, the value added of agriculture, electricity, gas and water supply and financial intermediation decreased. The decrease of the value added of agriculture was caused by the fast increase in prices of the agricultural products (the output in agriculture at current prices increased). The value added of electricity, gas and water supply decreased mainly due to the decline of the growth in exports of electric energy. The value added of financial intermediation fell due to the decrease in the insurance output and increase in insurance claims.

Compared to the previous quarter, the seasonally and working-day adjusted GDP grew by 2.1%.

GDP growth, 1st quarter 2006 – 1st quarter 2011

Diagram: GDP growth, 1st quarter 2006 – 1st quarter 2011

The second estimate of the GDP for the 1st quarter calculated by production, expenditure and income approaches will be published by Statistics Estonia on 9 June.

For further information:

Tõnu Mertsina
Head of National Accounts Service
Statistics Estonia
Tel +372 625 9353