GDP Growth Takes Huge Tumble in Q3 ({{commentsTotal}})

Source: Photo: Postimees/Scanpix

Initial estimates for Q3 growth have added more gloom to the nation's economic picture as Statistics Estonia marked the year-on-year GDP rise at just 0.4 percent, far lower than the 1 percent gain seen between the second quarters of 2012 and 2013.

A slowdown in construction - a main driver of growth last year - was once again blamed for the poor showing. According to today's press release from Statistics Estonia, the sector has taken hits from a depletion of EU funds as well as from lower revenues from carbon emission credit sales.

Passivity in the real estate market and in agriculture also contributed to the poor results, while retail trade contributed most to growth.

State and private financial institutions have been locked in a race to downgrade 2013 growth forecasts. Most had been predicting over 3 percent growth before the year began, but now they put that figure between 1 and 1.6 percent.

August's initial estimate of 1.3 percent year-on-year growth in Q2 was downgraded from to 1 percent in September, with Statistics Estonia promising revised estimates for third quarter growth in early December.