The economy of Estonia expanded by 2.4% year-on-year in Q1 2026, accelerating sharply from 0.7% growth in Q4 2025. It marked the strongest economic expansion since Q4 2021, as household spending rebounded notably (4.2% vs -0.1% in Q4 2025), while government spending accelerated further (4.8% vs 3.1%). Moreover, gross fixed capital formation strengthened (6.9% vs 4.3%). On the external front, exports of goods and services slowed sharply (0.6% vs 5.0% in Q4 2025), while imports also eased (1.6% vs 3.5%). On the production side, the largest positive contributions came from the manufacturing (7.9%), energy (21.5%), and real estate (4.4%) sectors. On a seasonally adjusted quarterly basis, GDP grew by 1.1%, up from an upwardly revised 0.3% increase in Q4, marking the strongest quarterly growth since Q4 2021.