Estonia GDP Growth Slows to 1.8 Percent in Q2

Statistics Estonia reported that the nation's gross domestic product grew by 1.8 percent year-over-year in the second quarter of 2026. This figure represents a moderation from the revised 2.9 percent growth recorded during the first quarter of the year.

Manufacturing served as the primary driver of the economy with a 6.5 percent expansion in value added, supported by growth in agriculture, forestry, and fishing. However, other sectors saw significant deceleration. Household spending growth slowed to 1.6 percent from 3.8 percent, while government expenditure growth dropped sharply to 0.5 percent from 4.5 percent.

Net foreign demand turned negative for the first time since late 2024. This shift occurred as imports grew by 4.3 percent, outpacing export growth of 2.7 percent. On a seasonally and working-day-adjusted basis, the economy expanded by 0.3 percent compared to the previous quarter.