Investment in Estonia
Estonia - Investment
Economy contracts at much milder pace in Q3 as it emerges from Covid-19 restrictions
GDP dipped 1.9% year-on-year in the third quarter, softening from the 6.9% contraction logged in the second quarter, which had marked the sharpest downturn since the 2009 global financial crisis.
The softer decline reflected gradually recovering activity amid the loosening of pandemic-related restrictions. Private consumption slipped 0.7% on an annual basis, moderating significantly from the 8.8% decline seen in the second quarter. Meanwhile, capital spending soared 12.9% year-on-year, rebounding strongly from the 15.3% collapse logged in Q2. Moreover, public expenditure picked up, rising at the strongest pace in one and a half years (Q3: +5.4% yoy; Q2: +3.7% yoy).
On the external front, exports of goods and services contracted 8.6% in Q3, moderating from the 18.7% collapse in Q2 thanks to a rebound in merchandise sales. In addition, imports dropped a much softer 2.0% from the same quarter last year amid reviving domestic demand, after plunging 19.9% in Q2.
On a seasonally-adjusted quarter-on-quarter basis, economic activity jumped 3.3% in Q3, bouncing back to growth after two consecutive quarters of decline (Q2: -5.5% s.a. qoq).
The economy is expected to recover strongly in 2021 after this year’s blow dealt by the pandemic. Recovering confidence should help buoy business investment, a gradually improving labor market is seen supporting consumer spending, and exports should benefit from reviving foreign demand. The renewed proliferation of the virus across the EU clouds the outlook, however.
FocusEconomics Consensus Forecast panelists project the economy to grow 3.8% in 2021, down 0.3 percentage points from last month’s forecast. In 2022, our panelists see GDP growth at 3.7%.
Estonia - Investment Data
|Investment (annual variation in %)||-3.2||0.8||12.5||1.7||13.4|
5 years of economic forecasts for more than 30 economic indicators.
|Exchange Rate||1.12||0.65 %||Dec 31|
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February 5, 2021
Consumer prices rose 0.65% over the previous month in January, quickening from the 0.01% uptick logged in December 2020.
February 2, 2021
Industrial output increased 0.8% year-on-year in calendar-day adjusted terms in December 2020, contrasting the 1.5% dip recorded in the previous month.
January 8, 2021
Consumer prices ticked up 0.01% over the previous month in December, moderating from November’s 0.12% increase.
January 6, 2021
Industrial output dipped 1.6% year-on-year in calendar-day adjusted terms in November, swinging back to contraction after October broke a streak of seven successive months of tumbling production (October: +1.5% yoy). November’s reading was primarily driven by declining manufacturing production, which had expanded in the previous month.
December 7, 2020
Consumer prices climbed 0.12% over the previous month in November, contrasting the 0.51% declined logged in October.