Estonian 3Q GDP Revised Down To 15.6% Fall On Year

Estonian 3Q GDP Revised Down To 15.6% Fall On Year

STOCKHOLM (Dow Jones)--Estonia's economic output fell sharply in the third quarter compared with the year-earlier period, figures showed Wednesday.

Gross domestic product contracted by 15.6% in the third quarter from a year earlier, Statistics Estonia said in its revised estimate for the period. It had previously estimated that the economy had contracted by 15.3%.

"The GDP decreased successively for seven quarters, still the decrease decelerated in the third quarter," Statistics Estonia said.

On a quarterly basis, the Estonian economy contracted 3.0% in the third quarter, revised down from a previous estimate of 2.8%.

The Estonian economy, like the economies of Latvia and Lithuania, is realigning itself after years of surging, credit-fueled growth.

Attention has to a large extent focused on neighboring Latvia, and the risk of a currency devaluation with possible contagion to the two other Baltic states.

Revised Latvian 3Q GDP is also due out Wednesday, at 1100 GMT. Earlier reports have indicated that Latvian GDP shrank 18.4%.

Lithuania reported its second estimate for the third quarter Nov. 27, with a 14.2% contraction from a year earlier.

In the second quarter, Lithuania's economy contracted the most of all the Baltic states, with GDP falling 20.2% compared with declines of 18.7% in Latvia and 16.1% in Estonia.

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-By Karl Bruze, Dow Jones Newswires; 46 8 545 130 95; [email protected]

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(END) Dow Jones Newswires

December 09, 2009 02:24 ET (07:24 GMT)

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