GDP drop revised upward

  • 2009-09-10
  • From wire reports
TALLINN - Estonia's economy shrank less than previously estimated in the second quarter compared to a year ago, as a slowing drop in exports offset shrinking private consumption and investment, reports Bloomberg.

Gross domestic product fell by a revised 16.1 percent, the most since 1994, slightly less than the Aug. 12 preliminary estimate of 16.6 percent, reports statistics office Statistikaamet.
Exports fell 11 percent from a year ago, though less than the 17 percent fall in the first quarter. The 16 billion euro economy, stuck in its worst recession since independence in 1991, may hit bottom in the third quarter, says the Finance Ministry.

Household spending dropped 21 percent, compared with 17.6 percent in the first quarter. Individual and corporate investments into fixed assets slumped 39 percent, following the 26.6 percent fall in the first quarter. Unemployment rose to an eight year-high, with wages falling the most in 16 years.
The economy shrank a seasonally adjusted 3.4 percent from the first quarter, the sixth quarterly decline.