The gross domestic product of Estonia increased 2.1 percent in the third quarter of 2014, compared to the same quarter of 2013, Statistics Estonia reported today. The growth was led by manufacturing.
The production of electronics and wood accounted for the largest positive contribution to the increase of manufacturing. The other greatest contributor to the Estonian economy was trade. The growth in trade was mainly led by retail sector due to strong domestic demand. At the same time, external demand also grew in the third quarter.
The Estonian economy depends greatly on foreign demand and the main exporters are manufacturing enterprises. After a decline in the previous four quarters, the real export of goods increased 6.6 percent in the third quarter of 2014. The import of goods rose 3.5 percent in real terms.
The Estonian economy was slowed down by less demand in construction, administrative and support service activities, and professional, scientific and technical activities.
The Ministry of Finance predicts that the Estonian economy will grow 1.5 percent this year, down a percent from the number predicted last year.