Estonian economy expands 3.9% in Q1
TALLINN. May 11 (Interfax) - Estonian GDP expanded 3.9% year-on-year in January-March 2012, the country's statistics department reported.
Growth in construction and trade accounted for more than half of the GDP increase. The contribution of the industrial sector to GDP was negative in the reported period. The rise in price for the production of electronics, metal products and electricity had the biggest impact on reduced profitability in the industrial sector. Imports of cheaper electricity led to a reduction in electricity production indicators.
Profits in the processing industry are significantly dependent on exports, the growth of which slumped in the last quarter of 2011 and remained at the same low level in the first quarter of 2012.
Growth in exports of merchandise slowed to 8% in the first quarter.