Economic growth is continually driven by vigorous exports in manufacturing
According to Statistics Estonia, by flash estimates, the gross domestic product (GDP) of Estonia increased by 6.6% in the 4th quarter of 2010 compared to the same quarter of the previous year. In 2010, the annual GDP grew by 3.1% compared to the previous year.
In the 4th quarter, growth of the value added of manufacturing contributed to the GDP the most. Contribution of manufacturing to the GDP growth was 4 percentage points. Manufacture of radio, TV and communication equipment and apparatus had the biggest impact on the growth of the value added of this economic activity. The value added of manufacturing grew mainly with the support of vigorous exports. According to preliminary data, the exports of goods of the total economy grew by 53% in real terms in the 4th quarter.
In addition, considerable influence on the increase in GDP was contributed by the growth of the value added generated in energy, trade, transport, financial intermediation and other business activities.
Value added in the households, non-profit institutions and general government sector decreased. In addition to the mentioned sectors, the GDP growth was also hindered by the decrease in net taxes on products compared to the 4th quarter of the previous year. The main reason for the decrease in the net taxes on products was a higher comparison basis of the 4th quarter of 2009 characterised by bigger receipts of excise taxes than customary due to the stocking up of excise goods before the rise of tax rates.
Compared to the previous quarter, the seasonally and working-day adjusted GDP have grown successively for five quarters. In the 4th quarter the growth rate was 2.3% compared to the 3rd quarter.
GDP growth, 1st quarter 2005 – 4th quarter 2010
The first estimate of the annual GDP of 2010 and the GDP for the 4th quarter calculated by production, expenditure and income approaches will be published by Statistics Estonia on 11 March.