Estonia: Economic growth undershoots market expectations
August 12, 2013
According to the flash estimate released by Statistics Estonia (SE), GDP expanded 1.3% over the same period last year in Q2, which was an increase over the 1.1% rise recorded in Q1. The reading came in well below market expectations of a 2.6% expansion.
In seasonally and working-day adjusted terms, GDP rose 0.1% quarter-on-quarter, which contrasted the 1.0% drop tallied in the first quarter. As a result, Estonia escaped a technical recession.
According to SE, manufacturing was the greatest contributor to second quarter GDP growth. A more complete dataset for national accounts will be released on 9 September.
The Central Bank expects GDP growth to reach 2.0% in 2013 and 4.2% in 2014. FocusEconomics Consensus Forecast participants see the economy growing 3.0% in 2013, which is down 0.1 percentage points from last month's estimate. In 2014, economic growth is expected to accelerate to 3.6%.