Estonia: Economy remains robust in the second quarter
September 8, 2011
In the second quarter, GDP grew 8.4% over the same period last year, which was in line with the flash estimate produced in August but below the 9.5% rise in the first quarter. Although still expanding at a fast pace, the economy decelerated for the first time since September 2009. Growth in the second quarter of the year was mainly driven by domestic demand. Private consumption remained stable at 3.7%, while fixed investment growth expanded 15.1% (Q1: +20.6% year-on-year). Government consumption rebounded from a 0.2% decline in the first quarter to a 1.9% increase in the second. Exports of goods and services increased 31.7% in the second quarter (Q1: +39.4% yoy), while imports expanded 31.1% (Q1: +37.3% yoy). As both export and import growth decelerated at a similar pace, the contribution from external sector to economic growth remained unchanged at 2.6 percentage points. A quarter-on-quarter analysis confirms the deceleration implied by annual figures, as the economy expanded a seasonally and calendar-day adjusted 1.7% over the previous quarter, which was below the 3.1% increase recorded in the first quarter.