Estonian economy fell 15.1 pct in the Q109.06.2009, 09:31
The gross domestic product (GDP) of Estonia
decreased by 15.1% in the 1st quarter of 2009 compared to the same quarter in
the previous year, according to the first estimates of Statistics Estonia.
In the 1st quarter, the GDP at current prices was 52.2 billion kroons having
decreased successively in nominal terms already for two quarters. In real terms
the GDP decreased successively already for four quarters.
Compared to the 4th quarter of the previous year, the seasonally and
working-day adjusted GDP decreased by 6.1%.
The decrease in the GDP was influenced by steeply decreased domestic and
external demand. The domestic demand decreased by 21.4% compared to the 1st
quarter of the previous year above all due to the substantial decrease in
household final consumption expenditures, gross fixed capital formation and
change in inventories. The share of the domestic demand in the GDP was 98.9%.
The domestic demand at current prices was less than the GDP last 8 years ago (in
the 3rd quarter of 2001).
Household final consumption expenditures decreased by 17.6%. Expenditures
decreased in all expenditure groups, but the decrease in expenditures on
recreation and culture, transport and miscellaneous goods and services (e.g.
financial services, personal care, etc.) had the biggest effect. The gross fixed
capital formation decreased by 26.6%, whereas the decrease in investments in
non-financial corporations’ and households’ sectors had the biggest influence on
it. By fixed assets, investments decreased in transport equipment and machinery
and equipment the most. Investments in dwellings also decreased fast.
Due to the weak domestic demand, imports of goods and services decreased
steeply (-26.7% in real terms). Imports of goods decreased by 28.3% and imports
of services by 19.6%. The decrease in imports of motor vehicles, machinery and
mechanical equipment, chemicals and chemical products had the biggest impact on
the imports of goods. At the same time, imports of refined petroleum products
increased. Exports of goods and services decreased by 16% due to the weak
external demand. Exports of goods decreased by 18% and exports of services by
10.7%. The decrease in exports of electrical machinery and apparatus, wood and
wood products and motor vehicles had the biggest influence on the exports of
goods. At the same time, exports of refined petroleum products increased
substantially. The decrease in exports of freight transport services of road
transport and travel services influenced the exports of services the most. At
the same time, exports of railway transport services increased. The share of net
exports in the GDP was 1.7%. This indicator has continuously improved during the
last two years. The share of net exports in the GDP was positive last in the 3rd
quarter of 2000.
The value added decreased in the majority of economic activities. A steep
decrease of the value added in manufacturing, construction, retail and wholesale
trade and transport, storage and communications influenced the decrease of GDP
the most. In manufacturing the value added decreased in all economic activities
due to a continually small domestic demand and by virtue of that, the decrease
in orders. Exports of the manufacturing output decreased as well due to the weak
external demand. A steep decrease of the value added of construction was caused
by the decrease in construction volume of dwellings in the domestic market. The
decrease in value added of transport and storage was caused primarily by the
decrease in the value added of road transport and support activities of
The decrease of the value added in financial intermediation deepened in the
1st quarter due to the fast deceleration in the growth of financial and interest
income, fees and commissions’ income.