Revised Q3 Growth Figure Offers Some Consolation
Finance Ministry analyst Madis Aben said the upgrade to third quarter GDP growth announced today means Estonia's 2013 growth figure will at least reach the 1 percent mark.
Statistics Estonia today revised third quarter growth to 0.7 percent, up from a 0.4 percent flash estimate. The figure is still not stellar, but provides some optimism.
"Real economic growth in the third quarter was below the Finance Ministry's summer forecast, but nominal growth, which is more important from the perspective of state budget revenue, was consistent with the forecast," Aben said.
He said indicators that external demand would increase in the new year also provided hope that more growth was in store.
Financial institutions have been downgrading forecasts for several quarters, in response to economic growth falling below expectations.
In September, the Finance Ministry predicted annual growth of 1.5 percent, which was released before the meager Q3 growth estimate. In November, Aben said the year's GDP growth was likely to deteriorate further.