Economic growth decelerated in the 1st quarter
According to Statistics Estonia, by flash estimates, the gross domestic product (GDP) of Estonia increased by 3.9% in the 1st quarter of 2012 compared to the same quarter of the previous year.
Fast growth of the value added in construction and trade contributed to more than half of the GDP growth. The growth in construction was continually supported mainly by the repair and reconstruction work of buildings. Vigorous growth in retail trade was supported primarily by the fast growth of retail sales in grocery stores.
Industrial sector’s contribution to the GDP growth was negative. The decrease in the value added of the industrial sector was most of all influenced by the decline in the manufacturing of electronic and metal products and electricity supply. The decrease in electricity production was mainly caused by partly replacement of own production with the imported cheaper electricity. The value added of manufacturing substantially depends on exports, the growth of which steeply decelerated already in the last quarter of the previous year and stood on low level in the first quarter this year, as well. Export of manufacturing production has substantial impact on export of the total economy and likewise, on economic growth. Real growth of export of goods of the total economy decelerated to 8% in the 1st quarter.
The seasonally and working-day adjusted GDP increased by 0.5% compared to the 4th quarter and 4.0% compared to the 1st quarter of 2011.
GDP growth rate compared to the same quarter of the previous year, 1st quarter 2010 – 1st quarter 2012
Industrial sector includes mining, manufacturing and energy supply activities.
The second estimate of the GDP of the 1st quarter calculated by production, expenditure and income approaches will be published by Statistics Estonia on 8 June.