Economic growth was led by manufacturing in 3Q

According to the flash estimates of Statistics Estonia, the gross domestic product (GDP) of Estonia increased 2.1% in the 3rd quarter of 2014 compared to the 3rd quarter of 2013.

In the 3rd quarter, the main contributor to the GDP was manufacturing. The manufacture of electronics and wood accounted for the largest positive contribution to the increase of manufacturing.

In addition to manufacturing, the greatest contributor to the Estonian economy was the economic activity of trade. The growth in trade was mainly led by retail trade due to strong domestic demand. At the same time, external demand also grew in the 3rd quarter. The Estonian economy depends greatly on foreign demand and the main exporters are manufacturing enterprises. After a decline in the previous four quarters, the real export of goods increased 6.6% in the 3rd quarter of 2014. The import of goods rose 3.5% in real terms.

In the 3rd quarter, the Estonian economy was slowed down the most by the decrease of the value added in construction, administrative and support service activities, and professional, scientific and technical activities.

According to preliminary estimates, the GDP growth was also significantly influenced by the increased receipts of value added tax and excise taxes, which are a part of net taxes on products.

Compared to the previous quarter, the seasonally and working-day adjusted GDP increased by 0.2%, and compared to the 3rd quarter of the previous year – by 2.3%.

Export of goods (dark line); import (lighter line):

Diagram: GDP, growth of the export and import of goods

The revised GDP estimates for the 3rd quarter of 2014 will be published by Statistics Estonia on 9 December.

Source: Statistics Estonia

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