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. Last Updated: 07/27/2016

Estonia’s Economy Growing at 7.5%

TALLINN, Estonia — The Estonian economy grew 7.5 percent in the second quarter compared with the same period last year, offering more proof that Estonia is back on the road to strong growth after a lackluster 1999, officials said Friday.

The former Soviet republic’s economy last year slipped into a recession triggered by the 1998 financial turmoil in Russia.

It shrank by 2 percent in the second quarter of 1999, and by 1 percent for the year overall.

The first sign of positive growth after the collapse of Russia’s market, one of Estonia’s largest, came in the last quarter of 1999, with 4 percent growth, followed by 5.2 percent growth in the first three months this year and 7.5 percent growth in the three months ending June 30.

Buoyed by strong exports to Western markets and increasing consumer demand, analysts say the economy has performed better than expected and that annual gross domestic product growth for 2000 should be a respectable 4 percent to 6 percent.

"These latest growth numbers are encouraging. The economy’s livening up," said Finance Ministry spokesman Daniel Vaarik.