Rapid economic growth in the first quarter of 2021 (Q1 2021) bears the hallmarks of a potential economic boom which might come in the latter half of this year, and is not simply the result of a comparison with a low base reference in 2020 and the downturn sparked by the arrival of the pandemic, the Bank of Estonia (Eesti Pank) says.
The growth will continue to be strong in the second half of this year as coronavirus restrictions are lifted and people rapidly return to the workplace and away from remote working, as well as visiting stores and other businesses,the central bank says .
The central bank adds that caution is needed to ensure certain economic sectors do not overheat.
Data from state agency Statistics Estonia shows gross domestic product (GDP) grew by 5.4 percent year-on-year in the first quarter of 2021 .
GDP stood at 4.8 percent when working-days only are taken into account – a figure higher than both the final quarter before the coronavirus pandemic arrived – i.e. Q4 2019 – and greater even than that forecast before the pandemic struck.
Read more: ERR.EE