Estonian GDP Shrinks in Q3

Figures

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The Estonian economy contracted 2.4% year-on-year in the third quarter of 2022, reversing from a downwardly revised 0.4% expansion in Q2, data from Statistics Estonia (SE) showed on Wednesday.

It was the first time contraction in the economy since the second quarter of 2020, amid soaring inflation.

Private consumption fell by 0.4%, reversing from a 5.2% rise in Q2 and net external demand contributed negatively to the gross domestic product (GDP) growth, as exports grew by 3.6%, while imports rose at a faster 6.2%.

Meanwhile, government spending expanded by 1.1%, mainly driven by increases in public administration and defense, and in education.

On the other hand, investment edged up 0.2% from a year earlier, after a 23.9% plunge in Q2. On the production side, the most negative contributions to the GDP came from agriculture, energy sector, and real-estate activities.

On a seasonally adjusted quarterly basis, the GDP shrank by 1.8% in Q3, after contracting 1.3% in Q2. 

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