Estonia’s GDP dropped 2.7% year-on-year in Q4 2023 and 3.0% in 2023 in real terms (non-adjusted), according to Statistics Estonia.- In quarter-on-quarter comparison, GDP continued to contract in Q4, falling by 0.7% (swda).
- Nominal GDP growth slowed to 4.6% in 2023, while it was the weakest of the last eight years (excl. 2020). Nominal GDP level remained above the long-term trend in 2023, while it fell below it in real terms.
More than one third of the GDP decline in 2023 came from energy production. Contraction of transportation, manufacturing and construction had larger negative impact, as well.
As export of goods and services dropped more than imports, foreign trade deficit expanded and had large negative impact on GDP last year. Private consumption fell 1.5% in real terms, while after five quarters in contraction, it turned to a modest growth in Q4. Meanwhile, fixed capital investments dropped 3.4% in real terms – nonfinancial corporations’ investments declined, while household and government investments increased.
