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No. 29, 10.03.2016
p. 1/2
The Estonian economy grew 1.1% in 2015
According to Statistics Estonia, in 2015, the gross domestic product (GDP) of Estonia
increased 1.1% compared to 2014. In the 4th quarter of 2015, the Estonian economy grew
0.7% compared to the 4th quarter of 2014.
2015
In 2015, the GDP at current prices was 20.5 billion euros.
The year was characterised by a slow but steady growth of the Estonian economy. In the 1st
quarter the GDP grew 1.1% compared to the 1st quarter of 2014, while in the 4th quarter the
year-over-year growth was 0.7%. In total, the Estonian GDP increased 1.1% in 2015.
In 2015, the decrease in value added in transportation and storage influenced the Estonian
economy the most. The decline in construction and manufacturing activities had a big negative
effect on the GDP as well. The construction volumes on the domestic construction market
decreased and the value added of construction decreased mainly due to a decrease in the
construction of structures and repair and reconstruction work in building construction. The
biggest Estonian activity, manufacturing, decreased mainly due to a weak external demand.
Agriculture, forestry and fishing contributed to the increase of the GDP. In addition, professional,
scientific and technical activities and trade contributed the most to GDP growth in 2015. Trade
increased mainly due to a stable growth in retail sales.
Despite the increase in the first quarter of the year, in 2015, the real export of goods and
services fell 1.1% compared to 2014. The import of goods and services decreased 1.8%. The
decreased export and import of electronic products had the biggest negative impact on Estonian
foreign trade.
Similarly to the external demand, domestic demand was weak. Domestic demand fell 0.7%,
mainly as inventories decreased. Compared to 2014, inventories decreased in all subdivisions.
However, household and general government final consumption expenditures increased. The
increase in household final consumption expenditures was mostly caused by an increase in the
expenditures on food, recreation and transport.
Real gross fixed capital formation fell 4.5%. The investments of non-financial enterprises sector
in equipment and machinery and transport decreased the most. At the same time general
government investments increased. Although domestic demand decreased, the GDP increased
and the total final consumption expenditures, gross fixed capital formation and changes in
inventories total was smaller than the GDP by output method, forming 96.6% of the GDP.
Net export, i.e. the difference between export and import, was positive in 2015. The share of net
export in the GDP was 4%, which was higher than in the four previous years.
In 2015, the GDP grew slower than the number of hours worked and persons employed (which
grew 2.3% and 2.8%, respectively). Therefore, labour productivity per employee and hour
worked decreased by 1.6% and 1.1%, respectively. At the same time, the labour costs related to
GDP production have increased. Unit labour cost grew 5.7% compared to 2014.
4th quarter of 2015
The GDP at current prices was 5.4 billion euros in the 4th quarter of 2015.
In the 4th quarter of 2015, the Estonian economy grew 0.7% compared to the 4th quarter of
2014. In 4th quarter, the seasonally and working-day adjusted GDP increased by 0.9%
compared to the 3rd quarter of 2015 and by 0.8% compared to the 4th quarter of 2014.
The GDP in the last quarter of 2015 was driven the most by a rise in agriculture, forestry and
fishing. Furthermore, the value added in information and communication and professional,
scientific and technical activities also provided important support for economic growth.
No. 29, 10.03.2016
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In real terms in the 4th quarter of 2015, construction slowed the Estonian economy down the
most. In addition, the decline in the value added of manufacturing and transportation and
storage had a considerable negative effect on the GDP in the 4th quarter.
In the 4th quarter the GDP grew slower than the number of persons employed, but faster than
the number of hours worked. Therefore, compared to the same quarter of the previous year,
labour productivity per employee decreased, but labour productivity per hour worked increased.
Unit labour cost increased 5.2% in the 4th quarter of 2015.
In the 4th quarter of 2015 the domestic demand remained on the same level as in the previous
year. Domestic demand grew 0.2% in real terms, mainly due to an increase in household and
general government final consumption expenditures and decrease of inventories. Household
final consumption expenditures increased 3.2% at real prices. In the 4th quarter, the decrease in
gross fixed capital formation slowed down, being 0.4% smaller at real prices. The growth of
investments was mainly influenced by the growth of investments in machinery and equipment by
the general government.
In the last quarter of 2015, the real export of goods and services decreased 2.0% compared to
the same quarter of the previous year and the real import of goods and services fell 0.7%. Trade
was influenced the most by a decrease in the export and import of electronic equipment. The
share of net export in the GDP was 2.9%.
Real growth of GDP, manufacturing and exports of goods and services compared to the
same quarter of the previous year, 1st quarter 2013 – 4th quarter 2015
10
%
GDP
8
Manufacturing
6
Exports of goods
and services
4
2
0
-2
-4
I
2013
II
III
IV
I
2014
II
III
IV
I
II
III
IV
2015
For further information:
Annika Laarmaa
Leading Statistician-Methodologist
Economic and Environmental Statistics Department
Statistics Estonia
Tel. +372 625 9353
More detailed data have been
published in the Statistical Database.