TALLINN, Nov 13 (Reuters) - Estonia fell further into recession in the third quarter, as gross domestic product (GDP) slid a further 3.3 percent, data showed on Friday.
The former high flying Baltic state is suffering from a sharp decline in consumer spending as the credit crunch has hit it. Its GDP fell 1.1 percent in the second quarter. The downturn has come after two years of double digit growth.
"According to preliminary estimates, the decrease in the value added of manufacturing as an economic activity had the biggest influence on GDP," the statistics office said.
On a seasonally adjusted basis, the quarter-on-quarter GDP fall was 1.0 percent, bringing three straight quarters of decline. The median third quarter forecast in a Reuters survey of 6 analysts was for a 2.5 percent fall in GDP year-on-year.
"The decrease in the value added of manufacturing was caused by low domestic demand and by virtue of that, a decrease in orders," it added in a statement.
Estonia's econnmy expanded rapidly in recent years due to surging consumer demand, fed by easy credit from Nordic banks.
The lines of credit have now dried up as the global credit crunch hit and inflation is just falling from double digits.
The statistics office noted that industrial production had increased in the third quarter in export-oriented branches of industry, including in the manufacture of metal products, chemical products, and electrical machinery. (Reporting by David Mardiste, editing by Mike Peacock)