The economic growth of 4.3 percent registered by Estonia for 2019 was significantly faster than estimates issued as late as at the beginning of this year, and the growth rate of the economy in 2020 is due to be half that figure, SEB analyst Mihkel Nestor said in his comments on GDP for 2019 on Friday.
"It was mainly influenced, of course, by the very big contribution of the relatively small IT sector, including the successful export of their services. It definitely was also positive that despite the weakening of the global economic environment and demand by our trading partners, Estonia's exporting industry managed to withstand it relatively well at least as a whole," Nestor told BNS.
Nestor said its seems unlikely the economic growth of the past three years could continue in 2020 and also in 2021.
"Several of the factors that have been driving growth to date have been exhausted, and the external environment definitely is not favorable for faster growth either," he said.
According to the forecast by SEB, Estonia's GDP growth this year will be limited to 2 percent, which is half of the growth rate the county has seen in recent years.
"The slowdown in growth should not cause major problems for the economy, though," the analyst added.
Estonia's gross domestic product (GDP) grew 4.3 percent in 2019. Rapid economic growth continued from quarter to quarter, exceeding 4 percent for the third year in a row. The main contributor to the growth was information and communication, followed by wholesale and retail trade, and professional, scientific and technical activities, Statistics Estonia said on Friday.
Editor: Helen Wright