Economic growth accelerated in the 1st quarter

Compared to the previous quarter, the seasonally and working-day adjusted GDP grew by 2.4%.

In the 1st quarter, the GDP at current prices was 3.71 billion euros (58.04 billion kroons).

The fast growth of the value added of manufacturing (29%) contributed to the GDP the most. Contribution of the manufacturing to the GDP growth was 3.9 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. Manufacture of wooden, chemical and metal products had also bigger influence on the value added. The value added of manufacturing grew mainly with the support of vigorous exports. At the same time, the GDP growth became more even in the 1st quarter on account of the increase of the impact of other economic activities. In addition, transport, storage and communication, other business activities and construction had bigger contribution to the GDP growth. In the 1st quarter, the value added of construction turned to the growth after the two and a half years’ decrease. Construction of buildings and structures grew fast and the value added of construction increased 23% compared to the same quarter of the previous year. The fast growth of the value added of construction also proceeded from the low comparison basis of the previous year.

The GDP growth was substantially influenced by the increase in the receipts of the value added tax and excise taxes

The value added of forestry, fishing, electricity, gas and water supply and financial intermediation decreased. Deceleration of the growth of exports of electric energy contributed to the decrease in the value added of electricity, gas and water supply. The value added of financial intermediation fell due to the decrease in the insurance output and increase in insurance claims. In the 1st quarter the share of the economic activities with decreased value added was 12% (28% in the 4th quarter).

Growth of the value added of the economic activities, 1st quarter 2011

In the 1st quarter the number of persons employed and hours worked increased. This resulted in the deceleration of labour productivity of the total economy per hour worked to 0.7% compared to the same quarter of the previous year. Labour productivity per hour worked decelerated for the third quarter in succession. The productivity has been calculated by the resident production units (domestic concept) and by seasonally and working-day adjusted figures. The decrease of labour costs for the production of the GDP has decelerated. In the 1st quarter unit labour costs decreased by a percentage compared to the same quarter of the previous year.

The growth of the domestic demand accelerated to 13%, primarily due to the increase of inventories. In addition, the domestic demand was contributed by the increase in gross fixed capital formation and household final consumption expenditures (12% and 5%, respectively). The increase of the gross fixed capital formation was influenced mostly by the investments in transport equipment by business sector. The increase of the household final consumption expenditures was influenced mainly by the increase of the housing and transport expenditures.

In the 1st quarter, both export and import of goods and services increased by 39% in real terms. Export of goods grew by 53% and import of goods by 45%. The exports and imports of radio, TV and communication equipment and apparatus had the biggest influence on the growth of export and import. Although export of goods and services is continually bigger than imports in Estonia, the gap diminished substantially in the 1st quarter. The share of net exports to the GDP was 1.3%. In the 4th quarter of the previous year the respective figure was 7.4%.

On 8 September 2011, Statistics Estonia will release the time series of the revised GDP since 2002. For additional information about revisions please see /uudised/dokumendid/53247