The Estonian gross domestic product bottomed out in the second quarter, but the third quarter's improvement was anemic. Source: Statistics Estonia

TALLINN — Statistics Estonia adjusted the third quarter gross domestic product 0.3 percent from initial estimates released in November.

The new estimate shows a slightly larger decline of -15.6 percent as opposed to the earlier estimate of -15.3 percent, showing that while smallest Baltic state bottomed out in the second quarter it is still far from a quick recovery.

Swedbank analyst Maris Lauri says a definitive turnaround is being held back primarily by domestic demand.

“These facts confirmed our opinion, that the economy already hit the bottom in second and third quarter, and that the weakness of domestic demand , especially private consumption, holds back the growth of economy,” Lauri told Baltic Reports.

The domestic demand decreased by 28 percent, but the decrease decelerated from 30 percent in the second quarter. Household final consumption expenditures decreased by 20 percent. Expenditures decreased in all expenditure divisions, but the decrease in expenditures on transport had the biggest effect as it accounts for more than a quarter in the total sum of the decrease in household final consumption expenditures.

— Baltic Reports reporter Kai Joost contributed to this article