Q1 Economic Growth Figure Bumped Up to 1.1% ({{commentsTotal}})

Source: Graph: Statistics Estonia

Revised estimates from Statistics Estonia have put year-on-year economic growth at 1.1 percent for the first quarter of 2013, a slight improvement from the flash estimate of 1 percent released last month.

The small improvement is unlikely to impress analysts, who were disappointed by the worse-than-expected result, as well as by what turned out to be a 1 percent decline in GDP from the previous quarter, the first drop since the country began pulling out of its recession in 2009.

The initial result prompted the OECD to slash its forecast of this year's GDP growth from 3.7 percent to 1.5 percent.

In its latest statement, Statistics Estonia cited decreases in freight turnover as a large contributor to the quarter-on-quarter shrinkage, while the decline in growth compared with the same quarter of 2012 was tied to a decrease in construction volumes.

Exports for the quarter were up by 6 percent in the annual comparison, while imports grew by 5 percent.

Domestic demand grew by a mere 2.3 percent, the lowest result in nearly three years.