Financial News: Estonian Economy Contracts In Q1

Estonian Economy Contracts In Q1

(RTTNews) - Estonia's economy contracted in the first quarter of 2025, revised from a recovery estimated initially, preliminary figures from Statistics Estonia showed on Friday.

Gross domestic product fell 0.3 percent year-over-year in the first quarter, reversing a revised 1.2 percent growth in the previous quarter. In the flash report, the rate of change was an increase of 1.2 percent. The fourth quarter figure was also revised from a decline of 0.1 percent.

In the first quarter, half of economic activities contributed positively to the GDP, and the other half made a negative contribution.

The greatest negative impact on the economy came from the energy sector, which shrank 22.4 percent, followed by transport with a decline of 10.3 percent.

On the expenditure side, private consumption fell 0.6 percent amid notable fall in spending on accommodation and services. Overall investments fell only 0.1 percent as the general government investments in machinery and equipment and weapons systems surged.

The final consumption expenditure of government rose 1.7 percent, and both exports and imports climbed by 8.6 percent and 7.0 percent, respectively.

On a seasonally and working-day-adjusted basis, GDP rose 0.1 percent compared to the previous quarter, as estimated.

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