29.08.202505:00:00UTC+00Estonian Retail Sales Slump in July Amid Economic Cooldown

Estonia's retail sales growth dramatically slowed in July, plummeting to a year-over-year increase of just 0.7%, from a robust 5.0% in June. This stark drop highlights significant economic challenges the Baltic nation is grappling with as it navigates post-pandemic recovery.

The June data, released on August 29, 2025, showed a robust performance from Estonian retailers, with sales reaching a healthy growth of 5.0% compared to the previous year. However, the July numbers reflect a considerable cooling in consumer spending, raising concerns among analysts and policy-makers who were hoping for sustained economic momentum.

The drastic deceleration in retail sales may point to a broader economic slowdown, potentially impacting growth forecasts for the remainder of the year. Economists are closely watching these figures as they assess consumer confidence and the overall economic climate in Estonia. This downturn is particularly significant as Estonia evaluates the effects of its fiscal policies and international economic conditions in its pursuit of stable economic growth.