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The economy grew 1.1% in the 3rd quarter

News
Posted on 11 November 2016, 10:00
According to the flash estimates of Statistics Estonia, the gross domestic product (GDP) of Estonia increased 1.1% in the 3rd quarter of 2016 compared to the 3rd quarter of the previous year.

In the 3rd quarter of 2016, the seasonally and working-day adjusted GDP increased by 0.2% compared to the 2nd quarter and by 1.3% compared to the 3rd quarter of 2015.

Real GDP growth was positively influenced by net taxes on products. Although at current prices the receipts of alcohol excise duty decreased, compared to the 3rd quarter of the previous year there were increased receipts of both value added tax and the remaining excise duties. At the same time, payments of subsidies grew.

After having declined in the previous four quarters, the industrial sector’s value added grew more than 4%. The fastest growth took place in the production of energy. In the 3rd quarter, both the export and import of goods grew in real terms compared to the same quarter of the previous year. An increase in the export of electronic products and electrical equipment was the main contributor to the growth of export.

Diagram: GDP, real growth of the export of goods and value added in the industrial sector

The industrial sector includes the following economic activities: mining and quarrying; manufacturing; electricity, gas and water supply; and construction.

The flash estimate of economic growth is calculated only by the 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 the expenditure, production and income approaches.

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.

The revised estimates for the 3rd quarter of 2016 will be published by Statistics Estonia on 9 December.

The main representative of public interest of the statistical activity “National accounts” is the Ministry of Finance, on whose commission Statistics Estonia performs this statistical activity.