The economy grew 0.6% in the 2nd quarter
According to the flash estimates of Statistics Estonia, the gross domestic product (GDP) of Estonia increased 0.6% in the 2nd quarter of 2016 compared to the 2nd quarter of the 2015.
In the 2nd quarter of 2016, the seasonally and working-day adjusted GDP increased by 0.3% compared to the 1st quarter and by 0.5% compared to the 2nd quarter of 2015.
In the 2nd quarter, external demand was strong. The real increase of the export of goods of the total economy was 5% compared to the same quarter of the previous year. In the 2nd quarter, foreign trade was mainly influenced by the increase in the export and import of electronic products. Additionally, the export of goods was significantly affected by the increase in the export of electrical equipment and wood and products thereof. Furthermore, the real import of goods of the total economy increased 7% compared to the 2nd quarter of 2015.
According to the preliminary calculations, GDP growth in the 2nd quarter was negatively influenced by net taxes on products. At current prices, there were increased receipts of value added tax and excises. At the same time, payments of subsidies grew.
The flash estimate of economic growth is calculated only by production approach using VAT return information from the Estonian Tax and Customs Board and data from various statistical actions of Statistics Estonia which have been obtained by the time of preparing the estimate. Therefore, the flash estimate may differ from the revised estimates of the GDP, which are based on the respective quarterly data and calculated by expenditure, production and income approach.
The revised estimates for the 2nd quarter of 2016 will be published by Statistics Estonia on 8 September. On the same date data for 2012–2015 and the 1st quarter of 2016 will be updated according to the regular revision based on the supply and use tables and annual reports of enterprises. Also, GDP figures for the year 2010 are improved due to the changes in the supply and use tables.
From 2017 onwards Statistics Estonia will publish revised estimates for quarterly GDP 10 days faster and the flash estimate of GDP will no longer be published. More information is available on the website of Statistics Estonia.