Economic Growth Flattens Out, Warm Weather Blamed ({{commentsTotal}})


According to initial figures from Statistics Estonia, economic growth was only 0.7 percent last year, and the economy stood still in the fourth quarter.

The Ministry of Finance, the Bank of Estonia and private banks had all forecast higher growth, expecting a minimum of 1 percent.

The main culprit in the decline in the year's meager growth was the transit sector.

The fourth quarter standstill was caused by the warm weather, which affected the energy industry negatively. Heat production was down a sixth compared to the same quarter in 2012.

Kaspar Oja of the Bank of Estonia said that business energy savings did not spill over to increased investments.

He said that foreign demand has shown signs of recovery lately, and manufacturing growth outpaced overall economy growth last year by a wide margin.

The Bank of Estonia is predicting 2.6 percent growth for the current year.

+{{cc.replyToName}} {{cc.body}}
No comments yet.
Logged in as {{user.alias}}. Log out
Login failed

Register user/reset password

Name needs to be fewer than 32 characters long
Comment needs to be fewer than 600 characters long

Independence Day: Estonia’s way into the future isn’t a race

There is a lack of connection between the Estonian state, and the people who live here. While it expects a lot of the state, Estonian society doesn’t seem ready to contribute, writes Viktor Trasberg.

Lotman: Security academy would be crucial Estonian identity point in Narva

In an opinion piece published by Eesti Päevaleht, Tallinn University professor Mihhail Lotman found it important to overcome the mental barrier separating Ida-Viru County from the rest of Estonia.