MoF: Growth Likely to Drop Below Already Weak Forecast ({{commentsTotal}})

Source: Photo: Postimees/Scanpix

Finance Ministry analyst Madis Aben said the year's GDP growth is likely to deteriorate further from the already lowered forecasts.

In September, when the first and second quarter results were in, the ministry had set its annual forecast at 1.5 percent. Prior to that the ministry's prediction was at 3 percent, but half-year results were weaker than expected.

The Finance Ministry's September figure was used as a basis for the 2014 state budget.

SEB: Sluggish Q3 already priced in

Analyst for Swedish-owned SEB Ruta Arumäe said the weak economic growth in the third quarter was something that was anticipated.

"The slowdown of economic growth in the third quarter was completely expected," Arumäe told "The annual growth forecast remains at 1.3 percent," she said.

"The slowdown is chiefly due to the significant decline of exports in the third quarter, with goods seeing a drop of 10 percent and services 3 percent, at real prices," she said.

One of the main factors causing growth to drag is the construction sector, while retail continued to act as an economic engine.

Estonian GDP grew 1.3 percent in the first quarter and 1 percent in the second quarter.