Estonia's economy grew 1.8% in second quarter

Estonia's gross domestic product grew by 1.8 percent in the second quarter of 2026 compared with the same period last year, according to figures released by Statistics Estonia. At current prices, GDP reached €11.1 billion for the quarter.

Robert Müürsepp, manager of the national accounts service at Statistics Estonia, said the economy has now expanded for five quarters in a row. He noted that two thirds of economic activities contributed positively to GDP in the second quarter. As in the first quarter, manufacturing remained the main driver of growth, with its value added rising 6.5 percent. Agriculture, forestry and fishing followed with a 168 percent jump in value added, a result of an unusually low comparison base from last year. Construction value added rose 7.5 percent.

Other sectors also posted gains, including mining and quarrying (15.5 percent), water supply, sewerage, waste management and remediation (14.3 percent), and other service activities (12.3 percent), though their overall contribution to GDP growth was limited given their smaller size. The largest negative contributions came from real estate activities, down 3.6 percent, wholesale and retail trade, down 3.2 percent, and electricity, gas, steam and air conditioning supply, down 9.6 percent.

Investment falls as foreign trade expands

Foreign trade strengthened in the second quarter, with exports up 2.7 percent and imports up 4.3 percent. Müürsepp said that for the first time since the fourth quarter of 2024, net exports turned negative, meaning imports of goods and services exceeded exports by €70 million.

In goods trade specifically, exports climbed 4.2 percent while imports rose as much as 6.9 percent, driven largely by electricity trade. Services trade stayed close to last year's levels, with services exports up 0.8 percent and services imports down 1 percent, the latter mainly reflecting a decline in transport and communication services.

Seasonally and working-day adjusted GDP increased 0.3 percent compared with the first quarter of 2026 and 1.8 percent compared with the second quarter of 2025.