World Economy

Estonia Shows 2% Growth

Estonia Shows 2% GrowthEstonia Shows 2% Growth

Second quarter growth in 2015 for the Estonian economy registered at 2% compared to the same period last year, New Europe reported. According to Statistics Estonia, the GDP of the country is €5.2 billion ($5.9 billion) and the growth in the country has primarily come from a rise in trade levels, real estate activities, agriculture, forestry and fishing. Consumption in the economy has also increased which has had a positive impact on the receipts of value added tax to the exchequer. However, some sectors have decreased, primarily due to sanctions Russia placed on western food products. The food and beverages industry in Estonia decreased by 1.1% in the second quarter compared to the same period in 2014. Other sectors that have displayed declines are the transport industry and the construction industry. DNB Bank analyst Andres Klaar said that the Baltic countries’ economic growth figures are based on the ability to cope with the challenges caused by the external sector.