Once again the Gnomishly Handsome Nobel Economist has been handed a dish of Estonian Humble Pie.
Today - Estonia, the poster child for austerity defenders - as Krugman so appointed them, has done what he and other Keynesian's consider the impossible:
(as per my morning European notes distribution - emphasis mine)*ESTONIAN 3Q GDP RISES 1.7% IN QUARTER
*ESTONIAN ECONOMY GROWS ANNUAL 3.4% IN 3Q
Nov. 12 (Bloomberg) -- Estonia’s economy, the fastest- growing in the European Union last year, unexpectedly accelerated in the third quarter as gains in construction and the communication industry countered weaker Nordic demand.
Gross domestic product rose a preliminary 3.4 percent from a year earlier, compared with 2.2 percent in the previous three months, the statistics office in the capital, Tallinn, said today on its website. That exceeded all four estimates in a Bloomberg survey, which had the median forecast of 2 percent.
“Economic activities in the domestic market mainly contributed to GDP growth,” the statistics office said in the statement. “Construction, information and communication activities had the biggest contribution to growth for a third consecutive quarter.”
The newest euro-area member has benefited from rising corporate investment and stronger consumer spending even as demand in Nordic countries for its machinery and wood-product exports ebbs amid the continent’s debt crisis. Growth in the $19 billion economy may accelerate to 3.1 percent in 2013 from 2.5 percent this year, the European Commission said last week. GDP grew 8.3 percent last year, the most in the 27-member European Union.
To the hard working and austerity minded people of Estonia... Terviseks! Me tervitame teid!