Economic outlook, analysis and forecasts

Estonia - Economic forecast summary (May 2014)

 

After a slowdown in 2013, economic growth is projected to pick up gradually. While wage growth and low interest rates support private consumption, exports will be held back by weak economic growth in some of Estonia’s trading partners, including Finland and Russia.

The introduction of a structural fiscal balance rule is welcome. Automatic stabilisers should be allowed to work freely. Raising spending on well-targeted active labour market policies and on lifelong learning, and reducing the tax wedge on low-income earners would make economic growth more socially inclusive and reduce high structural unemployment.

Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.

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