Deceleration of the economic decline continued in the 1st quarter
According to Statistics Estonia, by flash estimates, the gross domestic product (GDP) of Estonia decreased by 2.3% in Estonia in the 1st quarter of 2010 compared to the same quarter in the previous year.
Deceleration of the economic decline continued successively already for the third quarter. In the 3rd quarter 2009, the GDP decreased by 15.6% and in the 4th quarter 9.5% compared to the same quarter of the previous year.
According to the flash estimates, in the 1st quarter the value added increased in agriculture, forestry, mining, manufacturing, electricity, water and gas supply and real estate, renting and business activity. The decrease in value added decelerated in wholesale and retail trade, hotels and restaurants, financial intermediation and transport, storage and communication activity.
The decrease of the value added of the industrial sector decelerated to -1% (in the 4th quarter of 2009 the decrease was -16%), largely based on convalesce of external demand and increase in the exports of industrial production. Whereas the domestic demand was small, the sales of manufacturing on the domestic market were still in downtrend. The decrease in the value added of the construction even accelerated as its output is mainly targeted on the domestic market.
The deceleration of the decrease of the GDP in the 1st quarter was also influenced by low comparing base of 2009.
Seasonally and working day adjusted GDP decreased in the 1st quarter compared to the 4th quarter of the previous year 2.3% (in the 4th quarter of 2009 the growth was 2.3% compared to the previous quarter.)
By the 1st quarter of the present year, the value of the GDP had fallen to the level of the 1st quarter of 2005 in real terms.
Gross domestic product by chain-linking method, 1st quarter 2005 – 1st quarter 2010
Industrial sector consists of mining, manufacturing, electricity, water and gas supply and construction activity, accounting for approximately a quarter of the gross value added of the total economy.
The first estimate of the GDP for the 1st quarter of 2010 calculated at production, expenditure and income approach will be published by Statistics Estonia on 9 June.