Gross domestic product decreased steeply in the 4th quarter
According to Statistics Estonia, by flash estimations, the gross domestic product (GDP) decreased by 9.4% in Estonia in the 4th quarter of 2008 compared to the same quarter in the previous year.
In the 1st quarter of 2008 the economic growth was +0.2%, in the 2nd quarter -1.1% and in the third quarter -3.5%.
In the 4th quarter the GDP decreased at current prices for the first time since 1995.
Compared to the 3rd quarter, the seasonally and working-day adjusted GDP decreased by 4.2%.
Value added decreased in the majority of economic activities. A steep decrease in the value added of the economic activities of industrial sector, especially of manufacturing, had a substantial impact on the decrease of the GDP. The decrease in the value added of manufacturing was caused by a continually small domestic demand and by virtue of that, the decrease in orders. Export of the manufacturing production decreased as well. The decrease in the value added of financial intermediation, which had started in the 2nd quarter, accelerated. In connection with the impeded production and consumption activity, receipts of the value added tax and excise taxes have decreased steeply.
The economic activities, which had a growth in value added according to flash estimates, contributed little to the GDP.
Real growth rate of the GDP compared to the same quarter of the previous year (seasonally and working days non-adjusted) and compared to the previous quarter (seasonally and working days adjusted), 1st quarter 2004 – 4th quarter 2008
The first estimate of GDP for the 4th quarter of 2008 calculated in accordance with the internationally recognized methodology will be published by Statistics Estonia on 11 March.