According to Statistics Estonia, the gross domestic product (GDP) decreased by 1% in the second quarter of 2024 compared to the same period last year. In the second quarter, GDP at current prices was 9.8 billion euros. According to Robert Müürsepp, Head of the National Accounts Group at Statistics Estonia, in contrast to previous quarters, the Estonian economy showed some signs of improvement in the second quarter. "Of the most significant sectors, only trade and construction had a significant negative impact on the economy during this period. The contribution of the manufacturing industry in the second quarter of this year did not change compared to the same period last year," Müürsepp added. According to him, real estate transactions had a positive impact on the economy. amounted to 1.7%. Added value is obtained by subtracting production costs from the turnover of enterprises (from manufactured goods in the context of national accounts). The slowdown was primarily caused by a slight improvement in the situation of enterprises in the non-financial sector – the added value in the sector decreased by 2.2%. The added value of the financial sector decreased by 3.4%. As in the previous two quarters, the economy was positively affected by the growth of tax revenues. The revenue from turnover tax and some excise taxes increased. The decline in private consumption remained at the level of the first quarter and amounted to 1.3%. Household spending on clothing and footwear decreased the most. In addition, spending on transport, as well as other goods and services, decreased significantly. Spending on financial and insurance services, food, accommodation and housing increased slightly. Final consumption of the government sector increased by 1.1%. Compared to last year, wage growth in the sector slowed down. However, wage growth in health care and education is the main factor in the growth of added value in the government sector. Investments increased by 7.9% in the second quarter. Investments by non-financial enterprises in other buildings and structures (64.9%) had a significant positive effect. Household investment in residential premises again had the greatest negative effect: their volume decreased by 19.2%. The situation in foreign trade improved in the second quarter. The decline in exports and imports decreased by only 1.6% and 0.3%, respectively. The separately considered trade decreased by a few more percent in both directions. There was a slight increase in the export of services, while the import of services increased, as in the first quarter. Net exports remained positive for the third quarter in a row. According to seasonally and working day adjusted data, GDP remained at the same level as in the first quarter of this year. Compared to the second quarter of last year, GDP has decreased by 1.3%. On 16 August, the data on the complete revision of national accounts for the period 1995–2023 were published. The data can be viewed here. National accounts data reflect the current state of affairs in the country's economy. Economic growth and decline are measured primarily on the basis of GDP and gross national income (GNI). The higher these indicators, the better the economic situation in the country and the well-being of its residents. Statistics Estonia carries out the statistical work "National Accounts" commissioned by the Ministry of Finance in order to obtain an overview of the current situation in the Estonian economy. More detailed data is published in the statistical database. See also the national accounts section. Read RusDelfi wherever it is convenient for you. Follow us on Facebook, Telegram, Instagram or TikTok.
