The GDP began to grow gradually since the 2nd quarter of the previous year

2010

In 2010 the GDP at current prices was 14.5 billion euros (226.9 billion kroons).

2010 is characterised by the gradual recovering of the GDP growth. When the annual GDP growth was 3.1%, the majority of it, i.e. 2.6 percentage points, was contributed by the rapid growth of the manufacturing. The growth of the value added of the manufacturing was supported by the vigorous growth of exports. In addition the growth of the value added of energy sector and financial intermediation had a considerable impact on the GDP growth. The increase in energy production was mainly caused by a growing demand for energy induced by more active manufacturing as well as by the growth in the exports of electricity. The growth of value added of financial intermediation was above all influenced by the growth of the income gained by banks from service fees and net interest income. The growth of the GDP was hindered by the decrease in the value added of construction and of the activities predominantly with non-market production (public administration and defence, education, health and social work). The value added decreased the most in construction. The decline in construction was mainly caused by the decreased volumes in dwelling construction on domestic construction market.

In 2010 the GDP increased in spite of the decrease in employment and in hours worked. This resulted in the growth of labour productivity per hours worked by 6% compared to the previous year. The growth of the labour productivity accelerated compared to the corresponding indicator of 2009. Thus, the efficiency of the creation of the GDP improved in 2010. The productivity has been calculated by the resident production units (domestic concept) and by seasonally and working-day adjusted figures.

In conjunction with the GDP volume growth the domestic demand began to grow since the 2nd quarter. However, the annual growth of the domestic demand was only marginal in 2010 and was contributed merely by the increase in inventories. Final consumption expenditures and gross fixed capital formation decreased annually, but both indicators manifested improvement since the second half of the year. The volume of the household final consumption expenditures and of the gross fixed capital formation began to grow since the 3rd and 4th quarter, respectively. The decrease of the household final consumption expenditures was mainly contributed by the decrease in expenditures on food and non-alcoholic drinks and on the goods and services of recreation and culture. The decrease of the gross fixed capital formation was influenced by substantial decrease in investments in buildings and structures by non-financial corporations and general government. At the same time, non-financial corporations increased investments in machinery and equipment. The share of the domestic demand in the GDP was the lowest of the past 16 years (i.e. the total of the domestic final consumption expenditures, gross fixed capital formation and change of inventories were smaller than the GDP by output method).

With the support of the improvement of the external demand, export of goods and services increased in real terms by 22%, incl. export of goods by 33%. The increase of export of services was modest. The rapid growth of export of radio, TV and communication equipment contributed the most to the growth of export of goods. Import of goods and services grew by 21%, incl. import of goods by 25%. Import of radio, TV and communication equipment and mining products contributed the most to the growth of import of goods and services. In 2010 compared to 2009, the external balance of goods and services improved in Estonia. The share of net export in the GDP was 6.7%, which is the best annual figure of the last 16 years.

4th quarter 2010

The GDP at current prices was 3.9 billion euros (61.3 billion kroons) in the 4th quarter.

When the GDP grew by 6.7% in the 4th quarter, the majority of the growth, i.e. 4.1 percentage points, was contributed by the rapid growth of the manufacturing. The growth of the value added of the manufacture of electronic and optical products and specifically manufacture of radio, TV and communication equipment had the biggest impact. The growth of the value added of the manufacturing was supported by the vigorous growth of exports.

The growth of the GDP was hindered by the decrease in the value added of agriculture, construction and of the activities predominantly with non-market production (public administration and defence, education, health and social work). The value added decreased the most in construction. The decline in construction was mainly caused by the decreased volumes in dwelling construction on domestic construction market.

Compared to the 3rd quarter, the seasonally and working-day adjusted GDP increased by 2.3% in the 4th quarter. Compared to the previous quarter, the seasonally and working-day adjusted GDP grew for the fifth quarter in succession.

Growth of the value added of economic activities, 4th quarter 2010

In the 4th quarter 2010, the domestic demand grew by 4% influenced mainly by the increase of gross fixed capital formation. Domestic demand was still less than the GDP in output method. Gross fixed capital formation grew by 12% contributed mainly by the increase in non-financial corporations’ investments in machinery and equipment. The gross fixed capital formation grew last in the 2nd quarter 2007. Household final consumption expenditures grew by 3% influenced mainly by the increase in expenditures on household equipment and maintenance and on transport.

With the support of the improvement of the external demand, export of goods and services increased in real terms by 37%, incl. export of goods by 53%. Rapid growth of export of radio, TV and communication equipment contributed to the growth of export in goods the most. Import of goods and services grew by 30%, incl. import of goods by 37%. Import of radio, TV and communication equipment contributed to the growth of import of goods and services the most. Export from Estonia is continually bigger than imports. The share of net export in the GDP was 7.4%.