Estonia GDP Growth Eases in Q4

The economy of Estonia expanded 0.7% year-on-year in the final quarter of 2025, easing from a revised 1.1% increase in the previous period. Government spending slowed (3.1% vs 3.4% in Q3), while private consumption remained weak (-0.4%). Net external demand also supported growth, as exports (4.7% vs 4.8%) rose faster than imports (3.1% vs 6.2%). Meanwhile, fixed investments rebounded (6.9% vs -0.5%). On the production side, the most positive contributions to GDP came from the manufacturing industry, along with information and communication. On a seasonally adjusted quarterly basis, GDP contracted by 0.1% in the fourth quarter, reversing from a downwardly revised 0.1% rise in the preceding period. For the full year 2025, the economy grew 0.6%.

The economy of Estonia grew 0.9% year-on-year in the third quarter of 2025, following a downwardly revised 0.8% gain in the previous quarter. This marked the largest economic growth since the first quarter of 2022, as government spending increased (3.4% vs 2.3% in Q2). In contrast, private consumption fell (-0.6% vs 0.9%) and fixed investments also contracted (-0.7% vs 1.4%). Net external demand also supported growth, as exports (5.7% vs 1.6%) rose more than imports (5.6% vs 2.4%). On the production side, most sectors contributed positively to the economic activity, led by energy (21.5%) and real estate sector (4.4%). On a seasonally adjusted quarterly basis, GDP grew by 0.4% in the third quarter, easing from a downwardly revised 0.5% rise in the preceding period.

The economy of Estonia expanded 0.9% year-on-year in the first quarter pf 2025, recovering from a revised 0.7% contraction in the previous period. This also marked the first GDP growth since the second quarter of 2024, as private consumption rebounded, increasing by 0.9% from a 0.8% decline in the previous quarter. At the same time, government spending increased (2.4% vs 1.3%). Net external demand also weighed on GDP, as exports (2.4% vs 5.7%) rose less than imports (3.5% vs 0.5%). However, fixed investments dropped (-0.3% vs 4.3%). 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 0.6% in the second quarter, following a revised 0.2% rise in the preceding quarter.