Estonia's government sector debt has risen by around 25 percent through the course of the year, the Bank of Estonia (Eesti Pank) says.
The rest of the world provided €425 million more in financing to the Estonian economy than Estonia had provided to the rest of the world, the Bank of Estonia said.
Companies and other financial intermediaries were net recipients of funds in the second quarter, while all other sectors of the economy were net providers, the central bank added.
The economy's consolidated debt did not grow during Q2 2023, though it rose by 9 percent on year.
Households quick facts (Source: Bank of Estonia)
- Households were net providers of funds, of €171 million, for the second quarter in a row.
- Their financial assets and liabilities increased by around 2 percent over the quarter.
- Financial assets have increased by 1.1 percent over the year; liabilities by 8.6 percent.
- The bulk of liabilities were in the form of loans, whose yearly growth in them continues to slow.
- Deposits grew by 2 percent over the quarter and by 4 percent over the year.
- The financial assets of households stood at 2.9 times their liabilities. This figure started to fall in 2022, as the liabilities of households grew faster than their financial assets.
Non-financial corporations quick facts (Source: Bank of Estonia)
- Companies took in €653 million more from other sectors, including from abroad, than they invested in them.
- Financial assets grew by 1 percent in the second quarter and liabilities by around 1.5 percent.
- Corporate loan liabilities increased by 2.7 percent over the quarter. Debt increased by 5.8 percent in total over the year and stood at 71.7 percent of the GDP for the past four quarters.
- Liquid corporate assets did not change as a ratio to debt liabilities over the year, and the debt-to-equity ratio has been stable throughout the past year.
- The equity of unlisted companies grew by 1 percent over the quarter and 3.2 percent over the year.
- A fall in share prices in the second quarter led to a 1.3 percent fall in the value of traded companies, while the value of shares listed in Estonia has risen by 3.3 percent over the year.
General government quick facts (Source: Bank of Estonia)
- The entire general government provided €21 million in funding for other sectors in the second quarter, while the central government received over €100 million in net funding.
- The consolidated general government debt grew by 10 percent during the quarter, to stand at 18.7 percent of the GDP of the past four quarters.
Financial sector quick facts (Source: Bank of Estonia)
- The net financing of banks and other financial intermediaries was €36 million, and their financial assets and liabilities increased by €1.2 billion.
- Financial assets and liabilities grew by 2 percent over the quarter and by 5 percent from the second quarter of last year.
- The loan portfolio increased by 2.5 percent in the quarter, while the yearly growth in it was 11.6 percent.
- The resources of the financial sector were equivalent to 171 percent of GDP.
The resources of the financial sector were equivalent to 171 percent of GDP.
Editor: Andrew Whyte
Source: Eesti Pank