In the third quarter, Estonian economy grew by 8.6%
According to Statistics Estonia, in the third quarter of 2021, the gross domestic product (GDP) grew by 8.6% year on year. The GDP at current prices was 7.9 billion euros.
In the third quarter of last year, the economy was in decline due to the pandemic, but this year, it has grown rapidly. Despite restrictions in the society, the economy has fared well. Compared to the pre-pandemic time, i.e. 2019, economic growth has been stable. The growth continues to be broad-based, and several economic activities have shown very strong results.
According to Robert Müürsepp, leading analyst at Statistics Estonia, the economic growth was driven by construction, information and communication, real estate, and transportation and storage activities. Also manufacturing and professional, scientific and technical activities recorded positive results. “In the recent quarters, the economy has done well overall, but some activities have not yet reached their pre-pandemic levels. Accommodation and food service activities, which has suffered the most in the crisis, remains 15% below its level of two years ago. Manufacturing also has not yet completely recovered,” said Müürsepp.
The only economic activity that had the opposite effect on the GDP growth in the third quarter was energy. The decline in the energy sector was due to fast growth in the prices of electricity and gas.
Private consumption grew at the same rate as the economy, i.e. by 8.7%. Growth was faster in the consumption groups that were hit harder during the pandemic: leisure and entertainment, transport, hotels and restaurants, clothing and footwear. Expenditures grew among else more on durables, such as clothing and furnishings.
Müürsepp points out that after several strong quarters, there was a fall in investments in the third quarter. “Primarily because of smaller investments in software and databases, investments declined by 8.8%. The investments of households in dwellings fell by 11.4%. On the other hand, in line with economic growth, enterprises’ investments in transportation equipment grew by 32% and investments in other machinery and equipment by 15.1%”, added Müürsepp.
Foreign trade continued rapid growth: exports and imports grew equally by 17.5%. The export of services grew the fastest, by 38.9%, driven by computer services and other technical and business services. The import of services grew mostly thanks to sea transport of freight and storage services. The biggest contributors to trade were wood and products of wood, computers and electronic equipment, metal products and electricity.
Compared to the previous quarter, the seasonally adjusted GDP grew by 0.7%, and compared to the third quarter of 2020, by 9.2%.
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 performing.
See also the national accounts section on our website.
More detailed data have been published in the statistical database.
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