Estonia’s economy grew 2.2% in the third quarter, estimate shows

Estonia’s gross domestic product grew 2.2% in the third quarter compared with the same period last year, according to a preliminary estimate from Statistics Estonia, ERR reported. The seasonally and working-day-adjusted estimate showed growth of 0.6% from the second quarter.

Robert Müürsepp, head of national accounts at Statistics Estonia, said several indicators pointed to a broad-based strengthening of the economy. He said growth had picked up slightly both year on year and quarter on quarter.

SEB economic analyst Mihkel Nestor said the preliminary estimate did not identify the sources of growth, but exports and domestic consumption had likely contributed. Improving demand in Estonia’s main export markets had helped revive goods exports, which had been weak for an extended period.

Household consumption had also recovered this year, supported by wage growth of nearly 6% and recently low inflation, Nestor said. Rising energy prices are now accelerating inflation again and are expected to slow consumption growth. Investment has remained subdued, although increased corporate borrowing could lead to better results in coming quarters.

Previous forecasts predicted faster economic growth in 2027, but higher inflation and interest rates could lead to lower estimates, Nestor said. He added that Estonia’s economic position was better than in recent years and that moderate growth was expected to continue next year.

Statistics Estonia will publish official GDP figures for the third quarter on November 30.