Estonia: Economy slows sharply in fourth quarter
February 10, 2012
According to the flash estimate released by Statistics Estonia (SE), in the fourth quarter, GDP expanded 4.0% over the same period the year before, which was less than half the 8.5% increase recorded in the third quarter. In seasonally and working-day adjusted terms, GDP contracted 0.8% quarter-on-quarter, contrasting the 1.0% increase recorded in the third quarter. For the full year 2011, the economy expanded 7.5%, the fastest pace since 2007. According to SE, the slowdown in exports of manufactured products had the biggest impact on the deceleration in GDP growth in the last quarter of 2011, mainly due to the decrease in exports of computers, electronic and optical products. A more complete dataset for national accounts will be released on 9 March 2012. This year, the Central Bank expects GDP growth to slow further and reach 1.9% before accelerating to 3.6% in 2013.