Economy grew 7.9% in the 3rd quarter

news release no 142

According to Statistics Estonia, by flash estimates, the gross domestic product (GDP) of Estonia increased by 7.9% in the 3rd quarter of 2011 compared to the same quarter of the previous year.

Compared to the 2nd quarter, the seasonally and working-day adjusted GDP grew by 0.8%.

GDP grew both in annual and quarterly comparison already for six quarters in succession. At the same time the growth has decelerated in the last two quarters.

Continually, manufacturing contributed the most to the GDP growth. In the 3rd quarter the growth rate of the value added in this economic activity decelerated and its contribution to the GDP growth diminished. Deceleration of the growth of the value added of manufacture of computers, electronic and optical products influenced manufacturing the most. Export has a substantial impact on manufacturing, but the growth rate of exports has decelerated during the last two quarters.

In conjunction with the decrease in the contribution of manufacturing, the GDP growth has become more broad-based due to the increase in the contribution of several other economic activities. According to the preliminary data, construction and information and communication had a considerable contribution to the GDP growth. The increase of value added tax and excise taxes which are part of net taxes on products had a considerable influence on the GDP growth, as well.

GDP growth, 1st quarter 2006 – 3rd quarter 2011
Diagram: GDP growth, 1st quarter 2006 – 3rd quarter 2011

The second estimate of the GDP for the 3rd quarter of 2011 calculated by production, expenditure and income approaches will be published by Statistics Estonia on 9 December 2011.

For further information:

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