Estonia Economy Recovers in Q2

The economy of Estonia expanded 0.9% year-on-year in the first quarter pf 2025, recovering from a revised 0.7% contraction in the previous period.

This also marked the first GDP growth since the second quarter of 2024, as private consumption rebounded, increasing by 0.9% from a 0.8% decline in the previous quarter.

At the same time, government spending increased (2.4% vs 1.3%).

Net external demand also weighed on GDP, as exports (2.4% vs 5.7%) rose less than imports (3.5% vs 0.5%).

However, fixed investments dropped (-0.3% vs 4.3%).

On the production side, most sectors contributed positively to economic activity, led by the energy sector, real estate, and information and communication.

On a seasonally adjusted quarterly basis, GDP grew 0.6% in the second quarter, following a revised 0.2% rise in the preceding quarter.