The economic slowdown continued

The seasonally and working-day adjusted GDP grew by 0.4% compared to the previous quarter as well.

For the second consecutive quarter, trade contributed the most to economic growth with the help of steadily growing retail trade. In addition, the main positive contributors to GDP growth was the economic activity of information and communication with administrative and support service activities.

In 2012, the value added of construction was the main contributor to economic growth, but, similarly to two first quarters of 2013, it showed a declining trend in the third quarter. Construction was the economic activity that decelerated economic growth.  The decrease in construction may have been caused by the depletion of EU transfers (EU financial framework for 2007-2013 is ending) and the revenue from the sale of carbon emission credits. In addition, GDP was negatively affected by real estate activity and agriculture.

The contribution of net taxes on products to Estonian economy was negative. This 2 per cent decrease was caused by a decline in the receipts of value added tax; excise tax receipts, however, increased. Compared to the third quarter of 2012, payments of subsidies increased as well.

The change of the main economic activity of Estonia (manufacturing) at real prices stayed on the same level as in the third quarter of the previous year. The value added of manufacturing depends on exports, the growth of which slowed down in the third quarter. The exports of manufacturing production affect the total export. In comparison with the third quarter of the previous year, the real export of goods decreased 3%, while the import of goods grew 1%.

Real growth of GDP, export and import of goods, 1st quarter 2008 – 3rd quarter 2013

The revised estimates for the GDP of the third quarter will be published by Statistics Estonia on 9 December.