Estonian Q2 GDP Annual Growth Slows to 1.8%
2026-08-31 05:21
By
Chusnul Chotimah
1 min. read
The economy of Estonia advanced by 1.8% year-on-year in Q2 2026, slowing sharply from an upwardly revised 2.9% growth in Q1.
The deceleration came as household spending (1.6% vs 3.8% in Q1) and government spending (0.5% vs 4.5%) both eased sharply.
On the external front, exports of goods and services accelerated (2.7% vs 1.3% in Q1), though at a slower pace than imports, which accelerated to 4.3% from 1.1% in Q1.
For the first time since the fourth quarter of 2024, net exports were negative.
Meanwhile, gross fixed capital formation fell at a softer pace (-6.1% vs -10.6%).
On the production side, the largest positive contributions came from manufacturing, which grew 6.5%, followed by agriculture, forestry, and fishing, which jumped 168.3% due to a low base effect last year, while the construction sector expanded 7.5%.
On a seasonally adjusted quarterly basis, GDP grew by 0.3%, easing from a downwardly revised 1.0% increase in Q1.