Estonia GDP Contracts 0.3% in Q1 2025 Amid Energy, Transport Declines

In the first quarter of 2025, Estonia's economy contracted by 0.3% year-over-year, reversing previous growth estimates, largely due to a sharp decline in the energy sector and transport. While sectors like information and communication, real estate, health, and professional services showed strong positive contributions, overall value added fell by 0.2%, and high inflation and a drop in vehicle sales impacted real economic performance. Lithuania's economy grew 0.4% quarter-on-quarter and 3.2% year-on-year, though growth slowed due to declines in information technology and professional services. Sweden's GDP shrank 0.2% quarter-on-quarter but showed a 0.9% annual increase, with weaker household consumption and business investment offset by exports. The Swedish government downgraded its growth forecasts for 2025 and 2026, citing uncertainties including potential U.S. tariffs. These developments highlight mixed economic performances in the Baltic and Nordic regions amid inflationary pressures and sector-specific challenges.