Estonia’s economy contracted in the first quarter of this year on weak household spending and investment, data published by Statistics Estonia (SE) shows. Gross domestic product fell 0.7% on a yearly basis in Q1, compared to fourth quarter’s 3.9% expansion.
The main cause for the economic downturn were net product taxes, which fell in the first quarter by 18.8%, mainly due to a drop in the value added tax and fuel excise duty receipts, SE said.
Household consumption growth decelerated sharply to 0.3% and investments declined 6.9%. At the same time, exports dropped by 2.6% and imports by 5.2%.
On a quarterly basis, GDP was down by seasonally adjusted 3.7% in the first quarter. Year-on-year, GDP fell by an adjusted 0.8%.
In a separate report, the Tallinn-based agency said that Estonia’s industrial production declined a working-day adjusted 16.9% year-on-year in April, following a 6.5% fall in March. On a monthly basis, industrial production fell a seasonally and working-day adjusted 8.4% in April.
Separate data from the statistical office showed that the retail sales declined 15% annually in April. On a monthly basis, retail sales rose a seasonally and working-day adjusted 8% in April, SE said on May 29.