TALLINN, May 13 (Reuters) - Estonia's gross domestic product (GDP) fell faster than expected in the first quarter of 2009 with a 15.6 percent year-on-year drop as the recession took down all sectors of the economy, the statistics office said on Wednesday.
Estonia entered recession in early 2008 after double digit growth in 2007, as cheap credit flows from Nordic banks dried up and domestic demand shrank.
The median forecast for the first quarter in a Reuters survey of six analysts was for a fall in GDP of 12.0 percent after a fall of 9.7 percent in the fourth quarter.
"According to the flash estimations the steep decrease of the value added in manufacturing, construction and retail and wholesale trade influenced the decrease of GDP the most," the statistics office said in a statement.
"Exports of the manufacturing output decreased as well due to the weak external demand," the office said.
The Estonian finance ministry has forecast a fall of 8.5 percent in GDP for all of 2009.
(Reporting by David Mardiste; editing by Neil Fullick)