Analytics, Economics, Estonia, EU – Baltic States, GDP, Markets and Companies

LHV's economic analyst Heido Vitsur said that Sweden's 4-% economic growth suggests that Estonia's economy will also do well because its impact on the Estonian economy is very strong and direct.

"It is a very rare thing if economies that are tied together so strongly move in different directions," Vitsur said. "I don't think that the second quarter's growth will definitely be bigger than the first quarter's 4.4% but it will probably be good," he added.

At the same time Estonia's quarterly economic growth is very hard to predict because the country's economy is small and one-time factors, for instance Tallink's vessel purchase, might have a very strong impact on growth.

SEB's economic analyst Mihkel Nestor also expects economic growth to be strong in the second quarter and be on the same level as in the first quarter. "The industrial sector, which has the biggest impact in the value added being created, was able to substantially increase production volumes," he said, adding that construction and trade are also doing well.

According to Statistics Estonia, the sales of retail stores grew 5% in June. "At the same time the GDP statistics have been able to surprise analysts in the past few quarters, but we still hope that the positive main scenario realizes," Nestor said.

Nordea's economic analyst Tonu Palm forecasts Estonia's second quarter economic growth to total 3% because the growth speed of export and investments is to slow down a bit. In addition, he expects the economies of Spain, France and Germany to do well.

"The global economy has enlivened and export adds extra fuel to the internal demand of the economy of the eurozone. The consumer is the main growth motor. The reason behind it can be found in low interest rates, increasing employment and high economic confidence," Palm said.