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Decrease in expenditures on clothing and footwear

08
Sep '08

According to the preliminary calculations of Statistics Estonia, the gross domestic product (GDP) decreased by 1.1% in the 2nd quarter of 2008 compared to the same period in the previous year. Statistics Estonia changed over to the chain-linking method in calculating the economic real growth.

Compared to the 1st quarter, the GDP, chain-linked by the reference year 2000 and seasonally and working-day corrected, decreased by 0.8 %.

The decrease in the GDP was mostly influenced by the weak domestic demand and at the same time by the decrease in exports of goods and services.

Compared to the same quarter of the previous year, the domestic demand decreased by 2.8% primarily due to the decrease in private consumption and capital investments (-2.0% and -2.5%, respectively). Private consumption decreased mainly due to the decrease in expenditures on transport and clothing and footwear.

The decrease in exports and imports since the second half of the previous year deepened in the 2nd quarter this year even more. Compared to the 2nd quarter of the previous year, exports of goods and services decreased by 4.9% and imports by 8.2% by chain-linking method. Exports of goods decreased by 3.2% primarily due to the decrease in exports of refined petroleum products.

Exports of services decreased by 8.9% primarily due to the decrease in exports of services for railway cargo, airway passengers and cargo transport and trade related exports services. The decrease in imports of goods was influenced mainly by the decrease in imports of refined petroleum products and motor vehicles.

While imports decreases faster than exports, the deficit of net exports in GDP has increased since the second half of the previous year and amounted to -4.6% in GDP in the 2nd quarter this year. In the 1st quarter the indicator was -7.1% and in 2007 on an average -10.9% in GDP.

On the supply side the deceleration of the GDP was influenced mainly by the decrease in the value added in wholesale and retail trade, transport and storage, manufacturing and electricity, gas and water supply activities. The value added in financial intermediation activities also decreased.

The decrease in the value added in manufacturing was mainly caused by small domestic demand and decrease of orders resulting from it. A significant impact was the decrease in the value added in the manufacture of furniture.

Statistics Estonia

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