Estonia's economy expanded 11.6% in Q3

Analysis

Estonia's economy, the fastest growing in the European Union, expanded an annual 11.6% in the Q3, powered by consumer spending.

The pace of growth almost matched the 11.7% rate achieved in the previous three months, Tallinn-based Statistikaamet said on its Web site today. The economy grew 11.9% in the same period last year. We have “growth in wages, together with still growing loan portfolios,” said Anne Karik-Uustalu, a Tallinn-based analyst with Sampo Pank in an interview before the release. “It is still supporting the economy.” The unemployment rate fell to 5.4% in the 3Q, helping wages rise an annual 16.5%, the fastest rate in eight years. AS Hansapank, the biggest Baltic lender, said on October 26 its Estonian loan portfolio increased an annual 49% in the Q3 to €5.5 ($7.1 billion). Economic growth and spending are pushing up consumer prices which rose 3.7% in October. High inflation led the government on November 30 to drop for a second time its January 1, 2008 goal of adopting the euro and leave the date open. Countries wanting to make the currency switch must keep inflation within 1.5 percentage points of the 12-month average rate of the three European Union nations with the slowest consumer-price growth. Estonian inflation has been running about 1.5 percentage points above that target. Neighboring Latvia grew 11.1% in the Q3. The country releases Q3 growth data on December 8. (Bloomberg)

ADVERTISEMENT

Business confidence improves as consumer sentiment worsens Analysis

Business confidence improves as consumer sentiment worsens

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.