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GDP gap between Harju county and Estonia’s average is decreasing

Posted on 13. December 2019 10:00

According to Statistics Estonia, in 2018, 65% of the Estonian gross value added was created in Harju county, but the rest of the country is slowly catching up with Harju county.

In 2018, the gross domestic product (GDP) of Estonia was 26 billion euros at current prices. The contribution of Harju county amounted to 17 billion euros, 14 billion euros of which came from Tallinn. Harju county was followed by Tartu county and Ida-Viru county, the shares of which in Estonia’s GDP stood at 10% and 6%, respectively. Hiiu and Põlva counties had the smallest shares in 2018 – both contributed less than 1% to the Estonian GDP.

In 2018, 69% of the gross value added of Estonia was created in the service sector. The share of services was the biggest in Harju county (77%) and Tartu county (69%), mainly due to the influence of the cities of Tallinn and Tartu. Overall, the sector’s share in value added either remained on its previous level or decreased slightly. An exception to this was Järva county. The fastest decreases in the share of the sector took place in Valga, Viljandi and Võru counties.

Industry and construction accounted for 28% of the gross value added of Estonia in 2018. The highest share in value added is in Ida-Viru county (58%). The smallest shares of the sector are in Harju (22%), Tartu (27%) and Põlva (28%) counties. For the country as a whole, the share of the sector in value added remained at the level of 2017. However, between counties the picture was more complex. While in Põlva and Saare counties the share of the sector experienced a notable rise, the trend for Pärnu, Valga and Võru counties was opposite.

The agricultural sector accounted for 3% of the gross value added of Estonia in 2018. This sector had the largest share in Viljandi (22%) and Jõgeva counties (19%). Similar to 2017, the sector increased its share in value added again in 2018. The biggest impacts were seen in Valga, Viljandi and Võru counties.

In 2018, GDP per capita was 19,695 euros, which was 1,647 euros more than a year earlier. GDP per capita was the biggest in Harju county – 144% of the Estonian average. Harju County was followed by Tartu and Viljandi counties, where GDP per capita amounted to  91% and 67% of the Estonian average, respectively. The lowest level of GDP per capita was recorded in Põlva county – 42% of the Estonian average. In recent years, some counties have gotten notably closer to the Estonian average GDP per capita. This is most notable in Hiiu, Jõgeva, Rapla and Tartu counties. At the same time, Harju county has gotten closer to the Estonian average as well.

Agricultural sector – agriculture, forestry and fishing.

Industry and construction – mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply; water supply; sewerage, waste management and remediation activities; construction.

Service sector – wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities; information and communication; financial and insurance activities; real estate activities; professional, scientific and technical activities; administrative and support service activities; public administration and defence; compulsory social security; education; human health and social work activities; arts, entertainment and recreation; other service activities.

For the statistical activity “National accounts”, the main representative of public interest is the Ministry of Finance, commissioned by whom Statistics Estonia performs this statistical activity.