Decline in the economy continued in the 2nd quarter

In the 1st quarter of the current year GDP decreased by 15.1%.

Compared to the 1st quarter, the seasonally and working-day adjusted GDP decreased by 3.7% in the 2nd quarter. The decrease decelerated compared to the previous quarter — in the 1st quarter GDP decreased by 6.1% compared to the previous quarter.

The value added decreased in the majority of economic activities. Decrease in the value added of manufacturing, construction and wholesale trade influenced the decrease of GDP the most.

In manufacturing, the value added decreased in all economic activities due to a continually small domestic demand and by virtue of that, the decrease in orders. Exports of the manufacturing output decreased as well due to a weak external demand.

A fast decrease in the value added of financial intermediation had a remarkable impact on the GDP. This was in particular influenced by the decrease in the financial and interest income and fees and commissions’ income of the enterprises operating in this economic activity.

Real growth rate of the GDP, 1st quarter 2004 – 2nd quarter 2009

The first estimate of the GDP for the 2nd quarter of 2009 calculated in accordance with the internationally recognized methodology will be published by Statistics Estonia on 8 September. By virtue of the European Union requirements, Statistics Estonia revises calculations of the actual and imputed rent of dwellings over the whole time series since 1995 and reclassifies a certain number of units between the non-financial corporations sector and general government sector since 2002. In addition, Statistics Estonia revises the national accounts for 2005–2008 based on the supply and use tables and annual reports of enterprises. Together with the revision of the year 2008, data for the 1st quarter of 2009 will also be updated. All the above referred revised time series will be published in the Statistical Database of Statistics Estonia on 8 September.