Estonian economy expanded 6.6% in Q4 year on year

**~~Äike~~** · 02-14-2011, 02:09 PM

Estonian economy expanded 6.6% in Q4 year on year

Estonian gross domestic product increased 6.6% in the 4th quarter of 2010 compared to the same quarter of the previous year. This means that the GDP for 2010 grew by 3.1% compared to the previous year, according to the flash estimate of Statistics Estonia.

In the 4th quarter, growth of the value added of manufacturing contributed to the GDP the most. Contribution of manufacturing to the GDP growth was 4 percentage points. Manufacture of radio, TV and communication equipment and apparatus had the biggest impact on the growth of the value added of this economic activity. The value added of manufacturing grew mainly with the support of vigorous exports. According to preliminary data, the exports of goods of the total economy grew by 53% in real terms in the 4th quarter.

In addition, considerable influence on the increase in GDP was contributed by the growth of the value added generated in energy, trade, transport, financial intermediation and other business activities.

Value added in the households, non-profit institutions and general government sector decreased. In addition to the mentioned sectors, the GDP growth was also hindered by the decrease in net taxes on products compared to the 4th quarter of the previous year. The main reason for the decrease in the net taxes on products was a higher comparison basis of the 4th quarter of 2009 characterised by bigger receipts of excise taxes than customary due to the stocking up of excise goods before the rise of tax rates.