Country snapshots 2017-18: Estonia

Gaining momentum

GDP growth is projected to gain momentum in 2017 and reach 2.9% in 2018, mainly driven by domestic demand. Private consumption will remain robust and public investment will pick up, sustained by EU funds. Despite a favourable business environment and good financing conditions, private investment will recover only slowly. Exports will strengthen backed by increasing external demand. However, maintaining price competitiveness will be challenging due to increasing labour costs.

Fiscal policy will ease slightly but remain tighter than the fiscal rule of a structural balanced budget. Remaining inefficiencies in insolvency procedures, barriers to SME lending and labour shortages all undermine capital spending and productivity growth, calling for reforming the legal system, promoting new forms of business financing and strengthening the supply of marketable skills further.

GDP growth

2013 

Current prices EUR billion

2016

  

2017

% real change

2018

  
18.9 1.1 2.4 2.9

Visit www.oecd.org/eco/economicoutlook.htm    

©OECD Observer No 308 Q4 2016       




Economic data

GDP: +0.43% Q1 2017
Employment rate: 67.2% Q4 2016
Annual inflation: 2.4% Apr 2017
Trade: +3.0% exp, +4.0% imp, Q1 2017
Unemployment: 6.008% Mar 2017
LOOKING AHEAD: The outlook, to judge by factory order books, building permits, long-term interest rates and other "leading" indicators that point to future activity remains modest at best. Click curve to find out more country trends.
Updated: 14 June 2017

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