Estonian economy shrank by 1.9 percent in third quarter

In the third quarter of 2020, Estonia’s gross domestic product (GDP) decreased by 1.9 percent year on year, data from Statistics Estonia showed, the GDP at current prices was seven billion euros.

Leading analyst Robert Müürsepp said the economic decline in the third quarter (July, August and September) was primarily driven by the economic activities of transportation and storage, and manufacturing.

“A significant negative impact came also from real estate activities, and accommodation and food service activities. The construction sector also contracted significantly, whereas in the second quarter, it still experienced growth,” Müürsepp said.

Financial and insurance activities were the main positive contributor to the GDP; the energy sector and agriculture sector, which had a great yield, showed growth as well.

The contribution of information and communication activity was positive but modest, while previously it has been one of the growth engines of the Estonian economy.

“In most economic activities, the downturn continued, but the good news is that the decline was slower, as the restrictions set during the emergency situation were gradually lifted,” said Müürsepp.

Read more: ERR.EE

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