The economic recession in Estonia was a record for 15 years.

Economy of Estonia in the 4 th quarter of 2008 decreased by 9,4 percent year on year, which is the maximum value of at least 15 years, reported Bloomberg referring to data from the Ministry of Finance. In the previous quarter GDP fell by 3.5 per cent. The fall proved to be much larger than analysts had expected, which are expected to decline to 6.5 percent of GDP.
Figures of the recession in Estonia were a bit smaller than in neighboring Latvia, where the economy in the last quarter has lost 10.5 percent. In Lithuania, in the same period, GDP declined by half per cent. All of the Baltic economies, thus, were after the credit boom and the beginning of the global financial crisis in the worst recession since 1991.
The cause of the recession, according to most economists, is the dependence of the Baltic States from foreign borrowing and a record trade deficit figures, reaching 10 to 20 per cent of GDP.
At the end of the year the GDP of Estonia, according to a preliminary assessment of the Central Bank the country fell by 3.5 per cent. According to the Central Bank, the 2009 recession may be in the range from 5,5 to 8,9 percent. The worst rates in Europe are expected only in Latvia and Iceland.
Statistical Service Estonia recorded a rise in unemployment, which in the fourth quarter rose to a three-year maximum - 7.6 per cent. With regard to industrial production, it fell in December in a country one-fifth compared to the same month of 2007.