State agency Statistics Estonia reported this was the first quarter to see positive growth for a year.

GDP at current prices amounted to €10.5 billion in Q2 2025, the agency said.
Robert Müürsepp, national accounts team lead at Statistics Estonia, called the economic growth for Q2 2025 "modest" even as it was the first quarter since Q2 2024 to see growth.

"About half of economic activities contributed positively to the GDP, with the biggest contribution coming from the energy sector where value added grew by 43 percent. In real estate activities, value added rose by 5.4 percent. The biggest negative contributors were construction, with a 9.3 percent decline in value added, and transportation and storage, where value added decreased by 11 percent," he said.

Value added and tax revenues rose

In Q2 2025, value added increased by 0.3 percent, matching last year's growth. Value added represents total output after subtracting input costs. The government sector saw the fastest growth at 2.6 percent, while value added in non-financial corporations decreased by 0.1 percent, and the financial sector saw a 0.7 percent decline.

Tax receipts were high in Q2 2025, driven largely by value-added tax. As a result, net taxes on products rose by 4.9 percent in real terms. Although taxes' contribution to GDP fell in Q1 2025, it returned to last year's levels in Q2.

Private consumption grew by 0.9 percent in Q2 2025, with the highest increases in spending on insurance, financial services, and various sectors like information and communication, recreation, sport, culture, and furnishings. Conversely, spending decreased in a few areas, notably restaurants, accommodation, and transport.

Government sector final consumption expenditure grew by 2.4 percent, marking its fastest growth in the last four quarters.

Investments remained at the same level, while foreign trade continued to grow

Statistics Estonia said that in Q2 2025, investments were down 0.3 percent year-on-year, with a decline of 8.1 percent in non-financial corporations.

However, investments increased in all other sectors, rising by 10 percent in financial corporations, 10.1 percent in the general government sector, 7.2 percent in households, and 8.5 percent in non-profit institutions. The biggest positive contribution came from the increase in general government investments in machinery, equipment, and weapons systems, while the biggest negative impact came from decreased investments in other buildings and structures in non-financial corporations.

Foreign trade grew, with exports up 1.6 percent and imports up 2.4 percent. Net exports were positive by €168 million, the best result since Q1 2023. Exports grew more than imports, mainly driven by motor vehicles, transport equipment, fabricated metal products, and non-monetary gold. Service exports grew by 0.5 percent, while imports rose by 4.5 percent. The increase in services trade was driven by business services, computer services, and road transport, while construction services had the greatest negative impact.

The seasonally and working-day adjusted GDP increased by 0.6 percent from Q1 2025 and by 0.5 percent year-on-year.

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