Estonian Competitiveness Report 2013

The Estonian Competitiveness Report is a new publication by Eesti Pank that will in future appear annually.

There are several different possible approaches to analysing competitiveness, and this report considers many widely used groups of competitiveness indicators.

Competitiveness is analysed through:

1) Estonian export capacity (relative productivity growth, changes in export indicators and similar);
2) Relative price and cost competitiveness indicators.

The long-term competitiveness of a state is often defined very broadly, and the different statistical methods used to measure it may give conflicting signals. The Estonian Competitiveness Report written
by experts from Eesti Pank assesses Estonia's export strength to give a picture of external competitiveness, looking at long-term relative productivity growth and short-term deviations from the path of
sustainable growth. It also contains a detailed discussion of the indicators for relative price and cost competitiveness, which are based on a comparison of the dynamics of prices and wages in Estonia with
those of Estonia's main trading partners. 

This first review of Estonian competitiveness gives a detailed description of the analytical methodology used in the analysis, which can be used again in future publications.