Economic Growth in Estonia
Estonia's economy recorded an average growth rate of 2.0% in the decade to 2024, compared to the 0.8% average for Euro Area. In 2024, real GDP growth was -0.3%. For more GDP information, visit our dedicated page.
Estonia GDP Chart
Note: This chart displays Economic Growth (GDP, annual variation in %) for Estonia from 2021 to 2019.
Source: Macrobond.
Estonia GDP Data
2020 | 2021 | 2022 | 2023 | 2024 | |
---|---|---|---|---|---|
Economic Growth (GDP, ann. var. %) | -2.9 | 8.3 | -1.2 | -2.7 | -0.1 |
GDP (USD bn) | 31.8 | 37.2 | 38.2 | 41.5 | 43.1 |
GDP (EUR bn) | 27.9 | 31.5 | 36.3 | 38.4 | 39.8 |
Economic Growth (Nominal GDP, ann. var. %) | -2.2 | 12.9 | 15.4 | 5.7 | 3.9 |
GDP records best reading since Q1 2022 in Q2
Economy grows for the first time in a year: GDP rebounded in the second quarter, increasing 0.9% year on year, above the 0.7% contraction tallied in the first quarter. Q2’s figure marked the best result since Q1 2022 and the first expansion in a year. On a seasonally adjusted quarter-on-quarter basis, economic growth improved to 0.6% in Q2, following the previous quarter's 0.2% expansion and marking the best result since Q4 2021.
Domestic demand fuels recovery: Domestically, private consumption growth rebounded, growing 0.9% year on year in Q2, after a 0.8% decline in Q1. Moreover, government spending sped up to a 2.4% expansion in Q2 (Q1: +1.3% yoy). Together, these factors compensated for a drop in outlays; fixed investment was down 0.3% in Q2, contrasting with the 4.3% expansion in the prior quarter. On the external front, exports of goods and services growth moderated to 1.6% in Q2 (Q1: +6.2% yoy). In addition, imports of goods and services growth waned to 2.4% in Q2 (Q1: +5.7% yoy).
Panelist insight: EIU analysts said: “We forecast that real GDP growth will accelerate […] in 2025, following three years of flat or negative growth in 2022-24. […] Private consumption growth will rebound in 2025, reflecting solid real wage growth and declining interest rates easing the pressure on real household disposable incomes. However, a stronger rise in consumer spending will be prevented by inflation still remaining high compared with historical averages. Government consumption will make a positive contribution to growth. However, this impact will be somewhat limited by the government prioritising military spending rather than stimulative spending elsewhere.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Estonian GDP projections for the next ten years from a panel of 15 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Estonian GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Estonian GDP projections.
Want to get access to the full dataset of Estonian GDP forecasts? Send an email to info@focus-economics.com.
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