According to a flash estimate, Estonia’s gross domestic product (GDP) for the third quarter increased by 1.1 percent year-over-year, Statistics Estonia reported.
SEB economic analyst Mihkel Nestor told ERR’s radio news that he was expecting better results. "To be honest, this was an unwelcome surprise," said Nestor. "Some other indicators have improved during the third quarter. For example export increased relatively quickly and import growth was rather small — the trade deficit was one of the smallest in years."
Economic growth was actually on the relatively slow side everywhere, Nestor commented, but he believed that economic growth exceeding two percent should still be feasible for Estonia even in today’s situation.
Already weak economic growth was being led by certain sectors, such as the wood industry. "There is no broad-based growth to be seen," Nestor confirmed.
The GDP as adjusted for seasonal and working-day differences increased by 0.2 percent compared to Q2 of this year and 1.3 compared to Q3 of last year.
Following a decline during the previous four quarters, the industrial sector saw a four-percent increase in value-added growth, reported Statistics Estonia. The fastest growth was seen in energy production.
Taking price effects into account, both the export and import of goods increased compared to Q3 of last year, with the increase in exports being most affected by an increase in the export of electronic goods and electric equipment.
A revised estimate for the 2016 Q3 will be published by Statistics Estonia on Dec. 9.
Editor: Editor: Aili Vahtla