Estonian GDP Shrinks 0.3% in Q1
2025-05-30 05:09
By
Chusnul Chotimah
1 min. read
Estonia's economy contracted by 0.3% year-on-year in the first quarter of 2025, reversing a 1.2% expansion in the previous period.
Private consumption declined by 0.6%, following a 1.3% increase in Q4 2024, while fixed investments fell slightly (-0.1%), easing from a sharp 10.3% drop in the prior quarter.
Notably, government investment surged by 20.6%.
Net external demand weighed on GDP, as exports grew by 5.4% (up from 2.9% in Q4), but were outpaced by a 5.8% rise in imports (up from 4.8%).
However, government spending increased by 1.7%, after a 1.1% contraction in the previous quarter.
On the production side, most sectors dragged on economic activity, led by energy (-22.4%), agriculture (-17.8%), and transport (-10.3%).
The trade and financial sectors also declined by 3.3% and 1.6%, respectively.
On a seasonally adjusted quarterly basis, GDP shrank by 0.3% in Q1, following a downwardly revised 0.2% growth in Q4 2024, marking the first quarterly contraction in five quarters.