Supporters of the Recovery and Sector Contributions

During the second quarter, value added decreased by 1.7%, marking the slowest decline in the past year and a half. The largest contribution to the economic recovery came from the real estate sector, while the manufacturing sector remained stable compared to the previous year. Several other non-financial corporations also showed signs of improvement, with their value added declining at a slower pace of 2.2%. However, the financial sector saw a decrease in value added by 3.4%.

Additionally, government investments increased by 7.9%, with non-financial corporations’ investments in buildings and structures rising by a remarkable 64.9%. On the other hand, household investments in housing fell by 19.2%, which had a negative impact.

Improvement in Foreign Trade

Positive signs were also seen in Estonia’s foreign trade. Although both exports and imports decreased, the decline was minimal: exports fell by 1.6% and imports by 0.3%. The export of services showed modest growth, and the import of services continued on an upward trend.

Trends in Consumption and Investments

Private consumption in Estonia decreased by 1.3%, with the largest drop occurring in spending on clothing and footwear. However, spending on food, accommodation, and housing increased. Government consumption grew by 1.1%, driven primarily by wage increases in the healthcare and education sectors.

Although the economy has not yet fully recovered, the results of the second quarter give hope that Estonia’s economy is moving toward recovery. According to experts, rising tax revenues and investments are positive indicators that point to continued economic stabilization.

Source: Trade with Estonia – Estonian economy shows signs of recovery