GDP growth revealed as 1.8% for 2014 ({{commentsTotal}})

Muuga Harbor, Tallinn's international cargo port
Muuga Harbor, Tallinn's international cargo port Source: Photo: Courtesy Port of Tallinn

The figures for economic growth in the last quarter of 2014 are in: Statistics Estonia is reporting 2.7 percent annual growth in Q4 and 1.8 percent for the year overall, about where forecasts said it would be.

Manufacturing and processing led the way in the fourth quarter, primarily driven by electronics and timber processing.

The energy sector and retail were also strong, the latter thanks to strong domestic demand.

Foreign demand also gained momentum. Export of goods increased 8 percent, after factoring in price influences, while import growth grew to 6.6 percent.

Transport and construction generated less value added in Q4, and exerted the strongest braking effect.

Flash estimates indicate that VAT receipts contributed to the GDP growth, with the new procedure for VAT declarations introduced in November 2014 playing a role.

Growth of GDP from Q3 to Q4 after adjustment for seasonal and monthly factors was 1.1 percent.

Editor: K. Rikken