Estonian economy grew by 1.0% in the 2nd quarter

The seasonally and working-day adjusted GDP decreased by 0.2% compared to the previous quarter.

In the 2nd quarter, the GDP at current prices was 4.65 billion euros.

In the 2nd quarter, the fast growth of the value added in trade and real estate activities contributed the most to the economic growth. The growth in trade was supported mainly by the increase of value added in wholesale activities. The main reason for the acceleration of value added in real estate activity was the increase in the value added of rentals calculations of dwellings at both current and constant prices. In addition, the GDP growth was boosted by the growth of the value added of manufacturing due to the increase in manufacturing of computer, electronic and optical products.

The GDP growth was slowed down for the second quarter in succession by the decrease of value added in transportation and storage (it was influenced at the most by the fall of value added of warehousing and support activities for transportation). Additionally, the economic growth was negatively influenced by the decrease of the value added in professional, scientific and technical activities and in agriculture and forestry.

The real growth of export of goods in the total economy rose 9%, mainly due to the increased exports of chemicals and chemical products, computers, electronic and optical products and other manufacturing products. The import of goods grew 8% compared to the same period of the previous year mainly due to increase of import of the coke and refined petroleum and computers, electronic and optical products. In the 2nd quarter, the share of net export (or the difference between the export and import of goods and services) was 0.9% of the GDP. This estimate was positive last in the 3rd quarter of 2012.

In the 2nd quarter of 2013, the domestic demand increased 3.2%. The growth of the domestic demand was faster than the growth of GDP primarily on account of the growth of household final consumption expenditures. Household private consumption expenditures rose by 6% in real terms. The increase in the consumption of recreation and leisure goods and services, housing expenditures and food products had the biggest contribution to the growth.

In the 2nd quarter, the gross fixed capital formation fell in real terms by 1% mainly due to the decrease of government sector investments in buildings and structures, as well as in transport equipment. In business sector the gross capital formation grew 6%, the growth was mainly influenced by machinery and equipment. In the 2nd quarter of 2013, the domestic demand was smaller than the GDP, accounting for 96.9% of the GDP.

Real growth rate of the GDP compared to the same quarter of the previous year, 1st quarter 2009 – 2nd quarter 2013

Statistics Estonia revised the national accounts data for 2009–2012 based on the supply and use tables and annual reports of enterprises. The GDP for the 1st quarter of 2013 was also revised. As a result of the revisions, the annual GDP for 2009–2011 at current prices changed +0.3 to +2.5%. The annual GDP real growth during the referred period changed -0.8 to +1.3 percentage points and quarterly GDP real growth changed in the same period between -2.0 to +3.4 percentage points.

See a more detailed overview about the revision in 2013 on the website.