The economy grew by 0.9% in the second quarter

Robert Müürsepp, the national accounts team lead at Statistics Estonia, said that there was modest economic growth in the second quarter of 2025. The last time that the GDP grew was in the second quarter of last year. “About half of economic activities contributed positively to the GDP, with the biggest contribution coming from the energy sector where value added grew by 43%. In real estate activities, value added increased by 5.4%. The biggest negative contributors were construction, with a 9.3% decline in value added, and transportation and storage, where value added decreased by 11%,” noted Müürsepp.

Value added and tax revenue increased

In the second quarter, value added increased by 0.3%, just like in the second quarter last year. Value added is the total output of enterprises after taking away the value of inputs used for production. The fastest increase in value added was registered in the government sector – 2.6%. Value added decreased by 0.1% in the non-financial corporations sector and by 0.7% in the financial sector.

Tax receipts were high in the second quarter, mainly boosted by value added tax. Therefore, net taxes on products grew by 4.9% in real terms. The contribution of taxes to the GDP had decreased in the first quarter but was comparable to last year’s level in the second quarter.

Private consumption grew by 0.9% in the second quarter. Households’ expenditures on insurance and financial services increased the most. There was also a considerable increase in spending on information and communication, recreation, sport and culture, and furnishings. Households’ expenditures decreased in just a few categories, notably restaurants and accommodation services, and transport.

The final consumption expenditure of the government sector grew by 2.4%, which is the fastest rate of the last four quarters.

Investments remained at the same level, while foreign trade continued to grow

In the second quarter, investments were at a similar level year on year, falling by 0.3%. Investments were down by 8.1% in the non-financial corporations sector but increased in all other sectors. The increase in investments was 10% in the financial corporations sector and 10.1% in the general government sector. Households’ investments grew by 7.2%. Investments in the non-profit institutions sector were up by 8.5%. The biggest positive contribution came from the increase in general government investments in machinery and equipment and weapons systems. The decreased investments in other buildings and structures in the non-financial corporations sector had the biggest negative impact.

Foreign trade continued to grow: exports were up by 1.6% and imports by 2.4%. Müürsepp said that foreign trade has shown growth for four quarters in a row. “Net exports were positive by 168 million euros – this is the best result since the first quarter of 2023,” added Müürsepp.

Looking at trade in goods, exports grew more than imports, boosted primarily by trade in motor vehicles and transport equipment, fabricated metal products, and non-monetary gold. As for trade in services, exports grew by 0.5% while imports were up by 4.5%. The increase in trade in services was driven by business services, computer services and road transport. Construction services had the greatest negative impact.

The seasonally and working-day adjusted GDP increased by 0.6% compared with the first quarter of 2025 and by 0.5% compared with the second quarter of 2024. 

On 15 August, Statistics Estonia published the 2025 revision of national accounts.

National accounts data show how the Estonian economy is doing. The growth or decline of the economy is mainly measured by GDP and gross national income. The higher these indicators, the better Estonia and the people living here are doing.

Statistics Estonia performs the statistical activity “National accounts” for the Ministry of Finance in order to determine how the Estonian economy is doing.

More detailed data have been published in the statistical database. See also the national accounts section on our website. 

When using Statistics Estonia’s data and graphs, please indicate the source.
 

For further information:

Susann Kivi
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 5696 6484
press [at] stat.ee (press[at]stat[dot]ee)

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