The Estonian economy shrank by 2.9 percent in 2020, state agency Statistics Estonia reports, while gross domestic product (GDP) fell by 1.2 percent year on year to the fourth quarter of 2020 (Q4 2020). The culprit was primarily the COVID-19 pandemic and its ensuing restrictions, though foreign trade actually fared well given the conditions.
Manufacturing, trade, and accommodation and food services were the main contributors to the economic decline, Statistics Estonia says.
GDP at current prices stood at €7.3 billion.
Robert Müürsepp, leading analyst at Statistics Estonia, said that the factors behind the economic downturn in the fourth quarter consisted of contractions in the agriculture, forestry and fishing sectors, as well as in accommodation and hospitality, plus administrative and support service activities.
Müürsepp said: “The contribution in manufacturing was negative, but the situation in that economic activity improved to reach pre-pandemic levels. The rapid decline in transportation and storage also slowed down, and there were other signs of the economy recovering at the end of the year. Information and communication and the financial sector made a positive contribution to the economy.”
Müürsepp added that low tax receipts slowed the economy down in Q4 2020, just at they had done at the start of the year.
Read more: ERR.EE