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JÜRI KÄO: SUCH STRONG GROWTH WAS UNEXPECTED

One of Estonia’s most influential businessmen Jüri Käo says that he did not expect annual growth to reach 8% in the first quarter, writes Äripäev.

www.bbn.ee, 13.05.2011, 10:03

One of Estonia's most influential businessmen Jüri Käo says that he did not expect annual growth to reach 8% in the first quarter, writes Äripäev.

„But I am very happy because this is very good news," said Käo who owns, among others, NG Investeeringud, Liviko distillery and Tallinna Kaubamaja department store.

Käo said that while exports have so far been driving the country's economic turnaround, domestic consumption is recovering and should reach moderate growth rates in the second half.

"Moreover, unemployment rate has been falling and this is critically important that people regain confidence and start to spend and borrow again," said Käo.

According to Statistics Estonia, by flash estimates, the Estonian gross domestic product increased 8% in the 1st quarter of 2011 year on year.

According to preliminary data, the exports of goods grew by 53% in real terms in the 1st quarter. The exports of radio, TV and communication equipment and apparatus, electrical equipment and fabricated metal products increased the most. The share of the manufacturing output accounted for slightly more than half of the export of goods.

The growth of the value added of manufacturing contributed to the GDP the most. Manufacture of radio, TV and communication equipment and apparatus and fabricated metal products had the biggest impact on growth of value added