Estonian economy grew 2.7 pct in 4Q

According to the flash estimates of Statistics Estonia, the gross domestic product (GDP) of Estonia increased 2.7% in the 4th quarter of 2014 compared to the 4th quarter of 2013. The annual GDP growth in 2014 was 1.8% compared to the previous year.

In the 4th quarter, the main contributor to the GDP was manufacturing, which is the largest economic activity in Estonia. The manufacture of electronics and wood accounted for the largest positive contribution to the increase in manufacturing.

In addition to manufacturing, the greatest contributors to the Estonian economy in the last quarter of 2014 were energy and trade activities. The growth in trade was mainly driven by retail trade due to strong domestic demand. External demand also grew in the 4th quarter. The real export of goods increased 8.0% in the 4th quarter of 2014. The growth in the import of goods accelerated to 6.6% in real terms.

In the 4th quarter, the Estonian economy was slowed down the most by the decrease in the value added in transport and construction.

According to preliminary estimates, the GDP growth was also significantly influenced by the increased receipts of value added tax, which is a part of net taxes on products. One reason was the changed declaring procedure for value added tax implemented on 1 November 2014. Net taxes on products were also significantly influenced by the increased receipts of excise taxes.

In the 4th quarter of 2014, the seasonally and working-day adjusted GDP increased by 1.1% compared to the previous quarter and by 2.6% compared to the 4th quarter of 2013.Diagram: GDP, growth of the export and import of goods

The revised GDP estimates for the 4th quarter of 2014 will be published by Statistics Estonia on 11 March.

Source: Statistics Estonia

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