Economic growth slows to a crawl.
Postimees Digest, Tuesday, August 13
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Fresh data from Statistics Estonia suggests that the economy grew by 1.3 percent y-o-y and only 0.1 percent compared to QI in the second quarter. Analysts now put annual growth forecasts at around 2 percent and attribute the quarter's sluggish growth to the less than optimistic state of Estonia's main trade partners Sweden, Finland and Russia. Initial analysis suggests growth slowed down on account of transport, warehousing, agriculture, waterworks and waste treatment. "One of the reasons for slower growth is falling pollution quota investments. Secondly, the production capacity of quite a few industrial companies has been underutilized for some time now, suggesting that firms have put expansion plans on hold," said Bank of Estonia analyst Kaspar Oja. Decline continued also in construction where the private sector is unable to compensate for falling public procurement volumes. Minister of Finance Jürgen Ligi told ERR radio news that growth figures are not satisfactory and that slower growth will probably herald the end of rapid salary advance. Registered unemployment continued to fall in July, landing at 5.3 percent. Unemployment remains highest in Valga County (9.8 percent) and lowest in Viljandi County (3.5 percent).
Elisa launches 4G network.
Mobile phone operator Elisa launched its 4G LTE network yesterday after securing a license from the Estonian Technical Surveillance Authority (TJA). Chairman of the board of Elisa Sami Seppänen said that company set up its 4G network already in July by placing more than 240 transmitters across Estonia. The operator claims its 4G network now covers 95 percent of the country.