The latest economic forecast from Eesti Pank finds that the economy has started to grow again, but that it will do so slowly. The economy will shrink a little overall on average for the year, but will grow by around 2% next year and 3% in 2026. Inflation will remain at 3.5–4% this year and in the next two years, as tax rises will raise inflation in the short term. It is hard to escape from a lasting large budget deficit but it is important to do so because orderly state finances will lay better foundations for growth in the economy.