Estonian GDP expanded 0.8% on the year in the second quarter, marking a slowdown from the tempo seen in January-March, Statistics Estonia announced in a second estimate on September 8.
Seasonally and working-day adjusted, economic growth came in at 0.6% y/y, while gaining 0.5% in quarterly terms. In the first quarter, the economy expanded 1.7% y/y.
The growth in April-June was mainly supported by exports, which expanded 4.1%, as well as investment, which posted growth of 5.4% to end a streak of contraction that lasted eight quarters, Statistics Estonia notes. Consumption grew 3%.
On the negative side, economic growth was inhibited by the decreasing value of activity in the energy sector, mining and quarrying, and real estate activities.
Swedbank expects the Estonian economy to grow 2% this year, with improving investment and exports the primary drivers. The rapid growth of private consumption is likely to slow a little, the analysts forecast.
Pushing to 2% would mark a strong improvement on the feeble performance last year. Estonian GDP grew just 1.1% in 2015, the slowest rate of expansion since the Baltic meltdown in 2009.