The economy grew for the fourth quarter in a row: GDP up by 2.4% in Q1

Robert Müürsepp, the National Accounts Service Manager at Statistics Estonia, said that GDP growth was last over 2% in the first quarter of 2022. “GDP increased for the fourth quarter in a row,” he said.

“In the case of most economic activities, their contribution to GDP in the first quarter was positive, although mostly modest,” added Müürsepp. He said that, for the third consecutive quarter, manufacturing was the biggest driver of economic growth as its value added was up by 7%.

Administrative and support service activities also had a significant impact with a 11.6% increase in value added. Other activities did not contribute as much, although value added also increased for agriculture, forestry and fishing (10.2%), energy supply (5.5%) and arts, entertainment and recreation (5%). Professional, scientific and technical activities, construction, and transportation and storage were also positive contributors among the larger activities.

Trade was among the negative contributors with a small decline (-0.8%). Information and communication had the biggest negative impact on GDP, as its value added decreased by 10.9%. Economic growth was also slowed down by human health and social work activities (-4.8%). Value added also decreased in accommodation and food service activities (-4.9%), mining and quarrying (-5.4%) and water supply and sewerage (-4.5%), but these activities did not have a major impact on the economy.

In the first quarter, value added increased and private consumption started to grow

In the first quarter, value added grew by 1.5%. Value added is the total output of enterprises after taking away the value of inputs used for production. Value added grew by 0.7% in the non-financial corporations sector, by 2.2% in the financial corporations sector, by 2.4% in the non-profit institutions sector and by 4.7% in the government sector.

“Since value added increased in almost every sector, with the exception of the households sector, we can say that the growth in the first quarter was quite broad-based,” said Müürsepp. He added that while output grew extensively, value added did not grow as much due to the rapid increase in intermediate consumption.

In the first quarter, there was a significant improvement in private consumption which was up by 4.2%. “This is the fastest growth in private consumption since the second quarter of 2022,” noted Müürsepp. The biggest increase occurred in households’ expenditures on transport, and recreation, sport and culture. Households also spent more on financial and insurance services, and other goods and services. Only the spending on alcoholic beverages and tobacco decreased, and a slight decrease was also registered in the expenditure on food.

The final consumption expenditure of the government sector increased by 4.8%, which was influenced the most by defence expenditure.

Net taxes on products accounted for almost half of GDP growth and were up by 9% in the first quarter. There were increased receipts of value added tax and customs and excise duties.

Investments and foreign trade showed modest growth

Müürsepp said that although the economy improved markedly in the first quarter, the same trend did not apply to investments which decreased by 13.3%. “Investments in the first quarter have not been this low since 2017,” he explained.

A slight increase in investments was recorded only in the government sector (4.4%) and in the non-profit institutions sector (5.2%). Investments decreased in the non-financial corporations sector (-19.7%), in the financial corporations sector (-21.7%) and in the households sector (-15.8%). There was a notable decline in non-financial corporations’ investments in other buildings and structures (-39.5%) and in machinery and equipment (-9.6%). Households’ investments in dwellings were down by 16.6%.

The positive impact of foreign trade was limited in the first quarter: exports grew by 0.6% and imports by 1.6%. Net exports represented just 0.3% of the GDP, which is about 32 million euros. Exports were mainly boosted by the 1.5% increase in the supply of services, and imports by the 2.3% greater imports of goods.

Foreign trade was influenced by the increased exports and imports of fabricated metal products and gold for non-monetary purposes. In trade in services, there was a rise in the supply of various transport services as well as cultural and recreational services.

The seasonally and working-day adjusted GDP increased by 1.1% compared with the fourth quarter of 2025 and by 2.4% compared with the first quarter of 2025.

The national accounts produced by Statistics Estonia are based on EMTAK 2008, the 2008 version of the Estonian Classification of Economic Activities which is based on NACE Rev. 2. The Business Register only uses EMTAK 2025, the new version of the national classification, starting from 2025. National accounts statistics based on EMTAK 2025 (based on NACE Rev. 2.1) will be published from 2030 according to current plans in the European Union.

On 14 August, Statistics Estonia will publish the results of the revision of national accounts for 2022–2025.

National accounts data show how the Estonian economy is doing. The growth or decline of the economy is mainly measured by GDP and gross national income. The higher these indicators, the better Estonia and the people living here are doing.

Statistics Estonia performs the statistical activity “National accounts” for the Ministry of Finance in order to determine how the Estonian economy is doing.

Data as at 29 May 2026 are published. The indicator values may change if there are any revisions made in the data sources after this date.

More detailed data have been published in the statistical database. See also the national accounts section on our website.

When using Statistics Estonia’s data and graphs, please indicate the source.

For further information:

Annaliisa Köss
Media Relations Partner
Marketing and Dissemination Department
Statistics Estonia
Tel +372 5696 6484
press [at] stat.ee

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