The recession in Estonia has by now lasted for more than two years, but there are grounds to think that the economy will start to recover in the second half of the year. Signs of improvement are increasingly apparent. The downwards trend has ended in manufacturing, which is the branch of the economy that has suffered most and one that is very important for the overall performance of the economy, and exports of goods started to grow again at the start of the year. The opinions of businesses about export orders and their competitiveness in foreign markets have clearly shifted to become more positive, and so the expected exit of foreign markets from their slump will give a firm foundation for the outlook for growth in exports from Estonia. Increasing demand will contribute to growth in the economy alongside the expected increase in foreign trade, primarily because the purchasing power of people will increase and the labour market will remain resilient.
