Estonia's third-quarter growth revised to 5% 09.12.2010, 09:40
Statistics Estonia announced today that it had revised Estonia's economic growth to 5% in the third quarter year on year, up from the preliminary estimted of 4.7%.
Third-quarter growth was led by exports, higher inventory-building and growing private demand. It's the fastest increase since the fourth quarter of 2007.
Output grew a seasonally adjusted 0.7 percent from the previous quarter, compared with a preliminary estimate of 0.5 percent.
According to a central bank forecast, Estonia's economy may grow 2.5 percent this year and 4.2 percent in 2011 after shrinking by almost a fifth from its peak in 2007. Demand for Estonian electronics and machinery in Sweden and Finland is powering the recovery, while unemployment and high levels of private debt have depressed domestic demand.
Shipments of goods, such as wireless network gear for Stockholm-based Ericsson AB and wind generators for Zurich-based ABB Ltd., rose an annual 36 percent in the third quarter, after a 29 percent increase in the previous three months.
Household spending rose 1 percent due to higher spending on cars and household appliances, compared with a 3 percent decline. Domestic demand was mainly powered by inventory- building of goods and raw materials, the office said.
Investment declined 10 percent compared with a decline of 17 percent.