Estonia’s economy fared better in 2025 than in the two preceding years

Value added increased slightly in Q4, while private consumption continued to decrease

In the fourth quarter, value added grew by 0.4%. Value added is the total output of enterprises after taking away the value of inputs used for production. “In the non-financial corporations sector, value added was positive for the third consecutive quarter. However, the value added of financial corporations has now been in decline for four quarters,” explained Müürsepp. He added that the value added of the government sector showed marginal growth at 0.9%. “This is the weakest result for this sector since the first quarter of 2022. The value added of the non-profit institutions sector decreased for the second quarter in a row (-1.8%), which is the sector’s worst result since the first quarter of 2023,” said Müürsepp.

Net taxes on products increased by 3% in the fourth quarter, mainly on account of VAT receipts. Both value added and net taxes on products accounted for about half of GDP growth.

In the fourth quarter, private consumption declined by 0.4%. This was mainly due to decreased spending on transport and on alcoholic beverages and tobacco. There was an increase in households’ expenditures on financial and insurance services, recreation, and furnishings. A slight increase also occurred in expenditures on clothing and footwear, and information and communication.

Growth in investments and foreign trade

Investments grew by 6.9% in the fourth quarter, which was the best quarterly result last year. The main drivers were non-financial corporations' investments in other buildings and structures (42.8%) and households' investments in dwellings (22.8%). The biggest negative contributors were non-financial corporations’ investments in machinery and equipment (-42%) and general government investments in other buildings and structures (-12.7%).

Foreign trade continued to grow in the fourth quarter: exports were up by 4.7% and imports by 3.1%. “Net exports were 183.2 million euros – the strongest result since the first quarter of 2023,” noted Müürsepp.

In trade in goods, exports rose by 4.1% and imports by 2.3%. There was a significant increase in trade in coke and refined petroleum products, gold for non-monetary purposes, fabricated metal products, computers and electronic products, and electrical equipment. Imports of motor vehicles had the biggest negative impact on trade in goods.

In trade in services, exports grew by 5.6% and imports by 4.8%. This was primarily driven by sales and purchases of advertising and polling services and other business services.

The seasonally and working-day adjusted GDP decreased by 0.1% compared with the third quarter of 2025 and increased by 0.8% compared with the fourth quarter of 2024. 

There were positive signs from Estonia’s economy in 2025 

Value added was up by 0.3% in 2025 as a whole. Last year, value added decreased by 0.2% in the non-financial corporations sector and by 0.4% in the financial sector. By contrast, the value added of the general government sector grew by 2.3%. For the first time in three years, the value added of the non-profit institutions sector declined in 2025 by 0.4%.

The main positive contributors in 2025 were manufacturing and information and communication. “Information and communication has been among the main drivers of the Estonian economy throughout the last few difficult years, with the exception of 2024. Manufacturing last made a positive contribution to the GDP in 2021,” noted Müürsepp.

Of the larger sectors, real estate activities also provided a significant boost to the economy. In 2025, the main activities that hampered economic growth were trade as well as transportation and storage, and construction. 

Private consumption remained at the level of 2023 last year, as it did the year before. Looking at households’ expenditures, the biggest rise in 2025 occurred in expenditures on financial and insurance services. There was also a notable increase in spending on furnishings, recreation, information and communication, and education. The biggest decreases were recorded in expenditures on transport, alcoholic beverages and tobacco, and restaurants and accommodation services.

In 2025 as a whole, net taxes on products increased by 2.9% and investments by 3.2%. Investments were driven by the government sector where investments were up by 11.1%. Investments in other machinery and equipment and weapons systems grew the most (73.2%).

Exports and imports both grew by 5% last year. Net exports totalled 401.6 million euros by the end of 2025, representing the biggest trade surplus for Estonia since 2019.

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 2 March 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:

Kaia-Liisa Tabri
Communications Partner
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9617
press [at] stat.ee (press[at]stat[dot]ee)

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