Gross Domestic Product (GDP) fell by 6.9% YoY in the second quarter of 2020, according to the state agency Statistics Estonia. GDP at current prices stood at EUR 6.4 billion.
Robert Muursepp, leading analyst at Statistics Estonia, says most economic activities experienced an economic downturn as a result of the emergency situation.
“Accommodation and food service activities, which were hit most severely by the emergency situation, fell by 58%, manufacturing by 19%, trade by 11%, transport by 8%, real estate activities by 13% and professional, scientific and technical activities by 10%,” Muursepp said, adding that only construction and IT and communications saw growth over the period, of 12% and 8% respectively.
Tax receipts also fell, though at a slower rate than the overall downturn, Statistics Estonia says.
Exports fell by 19% and imports by 22% YoY in Q2, mainly due to an overall fall in freight and transport services and the contraction of travel services.
More goods and services have been exported than imported, resulting in a record net export surplus of 6.2% of GDP, Statistics Estonia said.
Seasonally adjusted GDP fell by 5.6% between the Q1 and Q2; on year it fell by 6.5%.
Household consumption fell by 8.7% YoY, with nearly all sectors seeing a fall, though lifestyle-related expenditure on food and communication services saw a growth.
Investments fell by 15.4%, with particularly high declines seen in investments by enterprises into buildings and structures (-35.2%) and transport equipment (-62.5%). This decrease was softened to some extent by an increase in government sector investments into buildings and structures (+7.7%) and households’ investments into dwellings (+3.1%).
Government sector consumption increased by 3.7%, mostly due to higher health care spending related to the coronavirus (+7.9%). (ERR/Business World Magazine)
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