The Estonian economy advanced 4.2 percent year-on-year in the third quarter of 2018, following an upwardly revised 3.8 percent growth in the previous period. It was the highest annual growth rate since the last quarter 2017, amid a strong rebound in fixed investment (4.2 pct vs -0.6 pct in Q2). Meanwhile, private consumption rose at a softer pace (4.1 pct vs 5.2 pct) and government spending contracted further (-0.8 pct vs -0.5 pct). Also, net exports contributed negatively to the GDP growth, as imports increased by 6.1 percent (vs 8 percent in Q2), while exports grew much softer at 0.8 percent (vs 6.5 percent). On the production side, the main contributors to economic growth were construction; manufacturing; professional, scientific & technical activities; information & communication; and transportation & storage. On a seasonally adjusted quarterly basis, the GDP rose by 0.4 percent in the September quarter, slowing from a 1.4 percent expansion in the second quarter. GDP Annual Growth Rate in Estonia averaged 4.25 percent from 1996 until 2018, reaching an all time high of 13.20 percent in the fourth quarter of 1997 and a record low of -19.30 percent in the third quarter of 2009.
GDP Annual Growth Rate in Estonia is expected to be 3.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Estonia to stand at 3.30 in 12 months time. In the long-term, the Estonia GDP Annual Growth Rate is projected to trend around 2.60 percent in 2020, according to our econometric models.