Estonian economy grows 1.1% ({{commentsTotal}})

The gross domestic product (GDP) of Estonia increased 1.1 percent in the first quarter of 2015, compared to the previous year.

In the first quarter, the GDP at current prices was 4.7 billion euros, Statistics Estonian announced on Tuesday.

The GDP was driven mostly by manufacturing, which was mainly due to an increase in electronic and wood production output. Manufacturing was the biggest contributor to the GDP growth for the third quarter in a row.

Transport sector suffered decline, mainly caused by the decline in land transit activities.

Wages have risen by 7 percent compared to the same time last year, which means that labor costs have grown substantially faster than productivity – the latter has slightly declined.

In general, Estonia’s economy was positively influenced by external demand and negatively influenced by domestic demand. Domestic demand decreased 1.6 percent at real prices.

Editor: S. Tambur

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