Estonia Economic Outlook
June 26, 2018The economy lost steam in the first quarter, kicking the year off on a soft note as annual growth slid to the lowest rate since Q4 2016. Growth was weighed down by a weaker external sector, amid evaporating momentum in export-oriented merchandise industries. The slowdown was also affected by a contraction in investment activity in Q1, which swung from healthy growth Q4, against the backdrop of moderating business confidence. Nevertheless, domestic demand was in the driver’s seat in Q1: Household consumption growth ticked up from the previous quarter, as lower inflation boosted retail sales against sustained tightness in the labor market. Meanwhile, S&P Global Ratings confirmed its AA- rating with a stable outlook for Estonia, citing the lowest debt burden in the Eurozone and the government’s strong commitment to maintaining the fiscal discipline.
Estonia Economic GrowthAccording to FocusEconomics panelists, the economy is projected to expand 3.6% this year, which is down 0.2 percentage points from last month’s forecast. Domestic demand should lead growth, as fixed investment is projected to recover later in the year, supported by capital inflows from EU cohesion funds. At the same time, and despite increasing wages, labor market productivity should improve in the medium term, boding well for private consumption. In 2019, our panelists expect GDP growth to moderate to 3.2%.
Estonia Economy Data
5 years of Estonia economic forecasts for more than 30 economic indicators.
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|Exchange Rate||1.17||0.65 %||Jul 11|
|Stock Market||1,259||-0.38 %||Jul 11|
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Estonia Economic News
July 4, 2018
According to Statistics Estonia, annual industrial production growth slightly picked up pace in May, coming in at 3.0% year-on-year, up from April’s 22-month low of 2.2%.
June 7, 2018
In May, consumer prices increased 0.3% over the previous month, down from April’s 0.4% print.
June 4, 2018
According to Statistics Estonia, annual industrial production growth decelerated in April from the previous month, coming in at a 22-month low of 2.2%, following a revised 6.2% (previously reported: +7.6% year-on-year) expansion in March.
May 31, 2018
The economy started 2018 on soft footing, with comprehensive data released by Statistics Estonia on 31 May putting annual GDP growth at 3.6% in the first quarter, down from the previous quarter’s 5.0% expansion and marking the weakest reading since Q4 2016.
May 16, 2018
In April, consumer prices increased 0.4% over the previous month, following a flat print in March.