Stable economic growth continued also in the 3rd quarter

news release no 156

According to the second estimates of Statistics Estonia, the gross domestic product (GDP) of Estonia increased by 8.5% in the 3rd quarter of 2011 compared to the same quarter of the previous year. During the three quarters this year economic the growth has been stably robust.

In the 1st quarter this year, the GDP grew by 9.5% and in the 2nd quarter by 8.4% compared to the same quarter of the previous year.

Compared to the previous quarter, the seasonally and working-day adjusted GDP grew by 1.2%.

The GDP in the 3rd quarter was 4.12 billion Euros at current prices.

Continually, manufacturing contributed the most to the GDP growth. In the 3rd quarter the growth rate of the value added in this economic activity decelerated and its contribution to the GDP growth diminished. Deceleration of the growth of the value added of manufacture of computers, electronic and optical products influenced manufacturing the most.

In conjunction with the decrease in the contribution of manufacturing, the GDP growth has become more broad-based due to the increase in the contribution of several other economic activities. Construction, information and communication had a considerable contribution to the GDP growth, as well. The increase of value added tax and excise taxes had a considerable influence on the GDP growth.

The economic growth was mostly hindered by the decrease of value added of real estate activities and professional, scientific and technical activities.

The fast growth of exports decelerated in the 3rd quarter, although it still grew fast. The exports of goods and services grew by 24% in real terms, of which the exports of goods by 32%. The imports of goods and services increased by 31%, of which the imports of goods by 30%. The fast growth of exports and imports of computers, electronic and optical products had the biggest influence on Estonian foreign trade. The exports of goods was also significantly supported by the exports of other machinery and equipment, whereas the imports of goods by the imports of wood and wood products. The share of net exports to the GDP was 7%.

The growth of the domestic demand increased by 15%, mainly due to the fast growth of gross fixed capital formation and changes in inventories. Gross fixed capital formation increased by 34%, primarily influenced by the investments in machinery and equipment of the business sector. Inventories grew largely due to the increase of inventories of goods, finished goods and materials of the business sector. Household final consumption expenditures increased by 5%, influenced mainly by the increase of the expenditures on restaurants and hotels, communication, transport and health. In spite of the fast growth of the domestic demand the total final consumption expenditures and gross capital formation were still smaller than the GDP.

The value added growth of activities, 3rd quarter 2011

Diagram: The value added growth of activities, 3rd quarter 2011

For further information:

Tõnu Mertsina
Head of National Accounts Service
Statistics Estonia
Tel +372 625 9353

More detailed data have been published in the Statistical Database.