Estonia: Economy continues its robust expansion in the third quarter
December 9, 2011
In the third quarter, GDP grew 8.5% over the same period last year, which was revised upwards from the flash estimate produced in November and was virtually unchanged from the 8.4% rise in the second quarter. Compared to the previous quarter, the economy expanded a seasonally and calendar-day adjusted 1.2% over the previous quarter, which was below the 1.7% increase registered in the second quarter. Growth in the third quarter of the year was mainly driven by investment and an increase in inventories, which according to Statistics Estonia (SE), added 6.3 and 3.5 percentage points respectively to economic growth in the third quarter. Fixed investment accelerated from a 15.1% expansion in the second quarter to a 34.4% increase in the third. Private consumption grew 5.1% in the third quarter (Q2: +3.7% year-on-year), while government consumption added 5.7% in the third quarter (Q2: +1.9% yoy). Exports of goods and services slowed from a 31.7% increase in the second quarter to a 24.4% expansion in the third. Simultaneously, imports decelerated slightly from a 31.1% rise in the second quarter to a 30.7% increase in the third. As a result, the contribution from external sector to economic growth swung from plus 2.3 percentage points in the second quarter to minus 2.0 percentage points in the third.