Estonia Economy Recovers in Q4

The economy of Estonia expanded 1.2% year-on-year in the final quarter of 2024, recovering from a revised 0.4% contraction in the previous period.

This also marked the first GDP growth since the first quarter of 2022.

Private consumption rebounded (1.2% vs -1.8% in Q3).

However, government spending declined (-1.1% vs 1.2%).

Fixed investments also dropped, albeit at a slower pace (-10.3% vs -15%).

Additionally, net external demand weighed on GDP, as exports (3.2% vs 0.9%) rose less than imports (3.5% vs 0.5%).

On the production side, most sectors contributed positively to economic activity, led by the energy sector, real estate, and information and communication.

On a seasonally adjusted quarterly basis, GDP grew 0.7% in the December quarter, following a revised 0.2% rise in the preceding quarter.