TALLINN — Estonia’s economy is still down due weak domestic demand in terms of high unemployment, but good export and industrial production results push the trend upwards.

Statistics Estonia announced Tuesday that the smallest Baltic state’s gross domestic product decreased by 2.3 percent in the first quarter of 2010 compared to the same period last year as holiday and pre-excise tax consumer spending petered out.

According to [private_supervisor]Karel Lember, an economic analyst at the Ministry of Economic Affairs and Communications, industries focused on exports are doing better, cushioning falling production levels. However, the low domestic demand and weak building sector continue to be deadweights on Estonia’s meek recovery. Lember said that the result was expected but it would have been better to see some increase compared to the fourth quarter.

“The current numbers show that the situation will not be worse but there also haven’t been a rapid turn for the better,” Lember told Baltic Reports. “In the next quarters we would like to expect better results and some growth in quarterly and annual basis.”  

Annika Paabut, Swedbank macroanalyst said that the recovery of Estonian economy will be export-based, but also the domestic demand will slowly pick up at the end of this year.

“The GDP level should be positive in annual basis by the end of 2010 which is supported by the foreign demand but also the investments coming from European Union structure funds,” Paabut told Baltic Reports.

Estonia’s results are the best in the Baltic states, followed by Lithuania whose GDP was 2.9 percent in annual basis giving hope for a small recovery this year. Lithuania’s economic trends mirror Estonia’s. However, Latvia’s results were very weak, posting -6 percent GDP year-on-year, although quarter-by-quarter the economy grew by 0.3 percent. Latvia’s recovery is the most uncertain and distant of the three countries, given the first quarter flash estimates. [/private_supervisor] [private_subscription 1 month]Karel Lember, an economic analyst at the Ministry of Economic Affairs and Communications, industries focused on exports are doing better, cushioning falling production levels. However, the low domestic demand and weak building sector continue to be deadweights on Estonia’s meek recovery. Lember said that the result was expected but it would have been better to see some increase compared to the fourth quarter.

“The current numbers show that the situation will not be worse but there also haven’t been a rapid turn for the better,” Lember told Baltic Reports. “In the next quarters we would like to expect better results and some growth in quarterly and annual basis.”

Annika Paabut, Swedbank macroanalyst said that the recovery of Estonian economy will be export-based, but also the domestic demand will slowly pick up at the end of this year.

“The GDP level should be positive in annual basis by the end of 2010 which is supported by the foreign demand but also the investments coming from European Union structure funds,” Paabut told Baltic Reports.

Estonia’s results are the best in the Baltic states, followed by Lithuania whose GDP was 2.9 percent in annual basis giving hope for a small recovery this year. Lithuania’s economic trends mirror Estonia’s. However, Latvia’s results were very weak, posting -6 percent GDP year-on-year, although quarter-by-quarter the economy grew by 0.3 percent. Latvia’s recovery is the most uncertain and distant of the three countries, given the first quarter flash estimates. [/private_subscription 1 month] [private_subscription 4 months]Karel Lember, an economic analyst at the Ministry of Economic Affairs and Communications, industries focused on exports are doing better, cushioning falling production levels. However, the low domestic demand and weak building sector continue to be deadweights on Estonia’s meek recovery. Lember said that the result was expected but it would have been better to see some increase compared to the fourth quarter.

“The current numbers show that the situation will not be worse but there also haven’t been a rapid turn for the better,” Lember told Baltic Reports. “In the next quarters we would like to expect better results and some growth in quarterly and annual basis.”

Annika Paabut, Swedbank macroanalyst said that the recovery of Estonian economy will be export-based, but also the domestic demand will slowly pick up at the end of this year.

“The GDP level should be positive in annual basis by the end of 2010 which is supported by the foreign demand but also the investments coming from European Union structure funds,” Paabut told Baltic Reports.

Estonia’s results are the best in the Baltic states, followed by Lithuania whose GDP was 2.9 percent in annual basis giving hope for a small recovery this year. Lithuania’s economic trends mirror Estonia’s. However, Latvia’s results were very weak, posting -6 percent GDP year-on-year, although quarter-by-quarter the economy grew by 0.3 percent. Latvia’s recovery is the most uncertain and distant of the three countries, given the first quarter flash estimates. [/private_subscription 4 months] [private_subscription 1 year]Karel Lember, an economic analyst at the Ministry of Economic Affairs and Communications, industries focused on exports are doing better, cushioning falling production levels. However, the low domestic demand and weak building sector continue to be deadweights on Estonia’s meek recovery. Lember said that the result was expected but it would have been better to see some increase compared to the fourth quarter.

“The current numbers show that the situation will not be worse but there also haven’t been a rapid turn for the better,” Lember told Baltic Reports. “In the next quarters we would like to expect better results and some growth in quarterly and annual basis.”

Annika Paabut, Swedbank macroanalyst said that the recovery of Estonian economy will be export-based, but also the domestic demand will slowly pick up at the end of this year.

“The GDP level should be positive in annual basis by the end of 2010 which is supported by the foreign demand but also the investments coming from European Union structure funds,” Paabut told Baltic Reports.

Estonia’s results are the best in the Baltic states, followed by Lithuania whose GDP was 2.9 percent in annual basis giving hope for a small recovery this year. Lithuania’s economic trends mirror Estonia’s. However, Latvia’s results were very weak, posting -6 percent GDP year-on-year, although quarter-by-quarter the economy grew by 0.3 percent. Latvia’s recovery is the most uncertain and distant of the three countries, given the first quarter flash estimates. [/private_subscription 1 year]

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