Analytics, Estonia, Financial Services, GDP, Markets and Companies, Wages

Statistics Estonia announced on Monday that the Estonian economy grew 2.2% in the second quarter of this year. It warned though that the GDP values and growth rates are not directly comparable to earlier data.

Finance Minister Jürgen Ligi stated that Estonia's economy is doing well. At present, the ministry is putting together next year's economic outlook and compiling the state budget.

When asked if the acceleration of economic growth would allow increasing the salaries of public sector employees next year, Ligi said: "Definitely less than we thought in the spring, because in the whole society and in the private sector too, wage increases have slowed down."

It has emerged that in the sectors that are out of government control, wage increase has been even too fast, Ligi said.

"We can no longer allow such big budget growths, and it would not be fair to the private sector either," said Ligi.

Compared to the first quarter, the gross domestic product grew by 0.5%. Manufacturing industries contributed to the growth most, while the most important contribution was made by timber and coke industry.

According to preliminary calculations, the GDP growth was significantly influenced by the increase in excise duties and VAT receipts too.

Statistics Estonia said though that the flash estimate of economic growth has been calculated according to revised time series. Therefore, the GDP values and growth rates currently available in the Statistics Estonia’s database are not directly comparable to the growth rate presented in this news release and the revised GDP estimates for the second quarter of 2014 will be published by Statistics Estonia on 8 September.