Today, December 5, Deputy Governor of Eesti Pank Mr Andres Sutt gave a presentation at the meeting of the Estonian Forest Industries Association, where he provided an overview of Estonia's current economic situation and future forecasts.

"Economic development is characterised by the alternation of rapid growth cycles with slower development periods. Currently, Estonia's economy is undergoing the expected development stage, where rapid expansion is being replaced by more moderate pace of development. This is in the interests of the good health of our economy," commented Sutt, adding that so far, the economic adjustment to slower growth has been smooth. "Investment growth has slowed in Estonia, especially in the real estate sector, whereas exports are on the rise, improving the external balance. Private consumption has declined, which in turn alleviates price growth pressures," said Sutt when speaking about the changes that have taken place. He stressed that the competitiveness of Estonia's enterprises abroad is very strong, which is also confirmed by export growth figures.

"My estimate is that Estonia's economy has every chance to grow approximately an average of 6% a year during the next five years. Further economic development will be supported by the strong banking sector and surplus-targeting budgetary policy. It is important to maintain a favourable business climate and keep bureaucracy to a minimum. In addition, we need to strengthen competition and labour market flexibility. Wage growth must get back in line with productivity and the clear target of adopting the euro at the first opportunity is extremely important. Enterprises can ensure success by increasing the value added of the goods and services they produce," Sutt said when pointing out the economic development paths of critical importance.

Further information:
Livia Kulm
Public Relations Office
Phone: +372 6680 745, +372 5291 449
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