FX.co ★ Estonia Economy Recovers in Q2

In the first quarter of 2025, Estonia's economy grew by 0.9% year-on-year, rebounding from a revised 0.7% decline in the previous quarter. This growth marks the first positive GDP increase since the second quarter of 2024, primarily driven by a recovery in private consumption, which rose by 0.9% compared to a fall of 0.8% in the previous quarter. Government expenditure also increased, up by 2.4% compared to 1.3% in the prior period. However, net external demand had a dampening effect on GDP, as export growth slowed to 2.4% from 5.7%, while imports rose to 3.5% from 0.5%. Meanwhile, fixed investments experienced a decline, contracting by 0.3% compared to previously growing at 4.3%. On the production front, most sectors positively contributed to economic activity, particularly the energy sector, real estate, and information and communication industries. On a seasonally adjusted quarterly basis, GDP increased by 0.6% in the second quarter, following a revised growth of 0.2% in the previous quarter.