Estonian Economy and Monetary Policy 1/2020

Like elsewhere in Europe and other countries around the world, the most topical question affecting the Estonian economy is what impact the steps taken to combat the COVID-19 pandemic and the restrictions they have placed on the activities of households and businesses will have. This issue of Eesti Pank’s Estonian Economy and Monetary Policy will give the usual review of the economies of Estonia, neighbouring countries and the rest of the world using the most recent data available, but as data are received with quite a long lag, most of the usual economic data do not yet show the impact of the pandemic. This edition of the review is different from usual because of COVID-19, as the pandemic has meant there is great uncertainty about any forecast. The focus here will be on how the Estonian economy may look in the near future, but a great deal depends on when the spread of the virus is brought under control and when the restrictions on the economy are lifted.