Estonia: Economic growth accelerates in the third quarter
December 10, 2012
In the third quarter, GDP grew 3.5% over the same period over the same period of the previous year, which was above November's flash estimate of a 3.4% increase and the 2.2% rise seen in the second quarter. The reading mainly reflected an acceleration in domestic demand. Private consumption grew 6.5% in the third quarter (Q2: +1.9% year-on-year), whereas government consumption slowed from a 4.3% expansion in the second quarter to a 0.8% rise in the third. In addition, fixed investment grew an impressive 33.8% in the third quarter (Q2: +25.8% yoy). Exports of goods and services slowed from a 4.3% increase in the second quarter to a 2.9% expansion in the third, whereas imports accelerated from a 5.9% rise in Q2 to an 8.9% increase in Q3. As a result, the external sector's net contribution to economic growth deteriorated from minus 1.1 percentage points in the second quarter to minus 5.4 percentage points in the third. A quarter-on-quarter comparison corroborates the acceleration suggested by annual data, as GDP rose a seasonally and calendar-day adjusted 1.6% over the previous quarter, which was above the 0.9% rise tallied in Q2.