Estonian economy grew by 5.2% compared to the pre-pandemic level
According to the preliminary data of Statistics Estonia, in the fourth quarter of 2021, the gross domestic product (GDP), which shows how the Estonian economy is doing, grew by 8.6% compared to the same period of 2020. The GDP at current prices was 8.7 billion euros.
Robert Müürsepp, leading analyst at Statistics Estonia, said that the economy maintained rapid growth in the last quarter of 2021. “The growth was still broad-based, but several economic activities were affected by soaring prices,” noted Müürsepp.
The growth was driven by manufacturing which climbed back to the pre-pandemic level. The economy was also boosted by information and communication, transportation and storage, and professional, scientific and technical activities. Accommodation and food service activities, which have been ravaged by the coronavirus crisis, continued to grow at a very rapid rate. The main activities that hampered economic growth were trade and agriculture due to price increases in these sectors. The energy sector remained at the same level year on year despite the increase in prices.
Müürsepp explained that the price changes were also reflected in private consumption which rose by 6.9%. “There was a fast growth, but it was significantly slower than in previous periods. The lifting of coronavirus-related restrictions had a noticeable impact. The biggest rise was recorded in people’s expenditures on restaurants and hotels, communication, and clothing and footwear. There was also increased spending on transport, health, and leisure and culture,” added Müürsepp.
Investments fell by 38.4%, but this was due to the exceptionally high reference base. The fall was mainly the result of the decrease in enterprises’ investments in computer software and databases
(-93.9%). There was also a decrease in households’ investments in dwellings (-12.6%). On the other hand, the biggest growth was recorded in enterprises’ investments in transport equipment (36.2%) and in other machinery and equipment and weapons systems (12.4%).
In the fourth quarter of 2021, exports grew by 22.6%, primarily driven by the sale of licence fees and transport services. The fall in the imports of computer services led to a decline in imports (-2.6%). Foreign trade also received a significant boost from trade in crude petroleum and natural gas, electricity, articles of wood and cork, and travel services.
According to seasonally adjusted data, the GDP growth was 1.8% compared to the third quarter of 2021 and 8.8% compared to the fourth quarter of 2020.
In 2021 as a whole, the economy grew by 8.3%. Compared to 2019, the economy grew by 5.2%, thereby exceeding pre-pandemic levels.
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.
For further information:
Media Relations Manager
Marketing and Dissemination Department
Tel +372 625 9181