A town in Estonia

Estonia GDP Q1 2019

Estonia: Growth hits over one-year high in Q1

Economic growth clocked in at 4.5% in year-on-year terms in Q1 2019, picking up slightly from the 4.3% acceleration recorded in Q4 2018, according to a detailed GDP release by Estonia’s Statistical Institute. The result marked the fourth consecutive quarterly acceleration and the fastest since Q4 2017. In seasonally- and working day-adjusted quarter-on-quarter terms, the economy expanded 0.5% in the first quarter, which was markedly lower than Q4 2018’s 2.1% increase.

Domestic demand continued to support growth at the beginning of the year, despite losing traction from the previous quarter (Q1 2019: +4.0% year-on-year; Q4 2018: +6.2% yoy). Fixed investment once again spearheaded the overall expansion, surging 17.1% year-on-year in Q1 (Q4: +17.7% yoy), amid booming investments by non-financial enterprises into transportation equipment, and machinery and other equipment. On a less positive note, household spending growth fell to a near two-year low in the first quarter (Q1 2019: +2.8% yoy; Q4 2018: +5.5 yoy), against the backdrop of an uptick in unemployment. However, a jump in public spending, with government consumption growth hitting an over one-decade high (Q1: +5.4% yoy; Q4: +2.2% yoy), somewhat shielded the slowdown in total consumption.

Meanwhile, despite weaker exports growth, the external sector strengthened on a slump in imports growth. Exports growth moderated to 4.6% in the first quarter on an annual basis (Q4 2018: +5.9% yoy), as a rare contraction in services exports dragged on robust merchandise exports growth. At the same time, imports growth slowed markedly (Q1: +3.8% yoy; Q4: +6.5%), likely due to softer consumer demand. As a result, the external sector’s contribution to GDP was greater in Q1 2019 than in Q4 2018.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest