The economy grew 0.5 pct in 3Q

According to the flash estimates of Statistics Estonia, the gross domestic product (GDP) of Estonia increased 0.5% in the 3rd quarter of 2015 compared to the same quarter of the previous year.

In the 3rd quarter of 2015, the seasonally and working-day adjusted GDP increased by 0.5% compared to the same quarter of the previous year and decreased by 0.5% compared to the 2nd quarter of 2015.

According to the preliminary calculations, the greatest contributor to the real growth of the GDP was real estate activity. Usually, manufacture and trade activities are the main contributors to the Estonian economy. However, in the 3rd quarter of 2015, the contribution of these activities was close to zero.

GDP growth in the 3rd quarter was positively influenced by net taxes on products. At current prices, there were increased receipts of value added and excise taxes. At the same time, payments of subsidies decreased.

In the 3rd quarter of 2015, the export of goods of the total economy decreased at real prices by 6% compared to the same quarter of the previous year. Additionally, the real import of goods of the total economy decreased 4% compared to the 3rd quarter of 2014.

Diagram: Real growth rate of GDP, export and import of goods, compared to the same quarter of the previous year

The flash estimate of economic growth is calculated only by production approach using VAT return information from the Estonian Tax and Customs Board and data from various statistical actions of Statistics Estonia which have been obtained by the time of preparing the estimate. Therefore, the flash estimate may differ from the revised estimates of the GDP, which are based on the respective quarterly data and calculated by expenditure, production and income approach.

Source: Statistics Estonia

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