According to the latest economic forecast of the Bank of Estonia, the economy has started to recover, but at a slow pace. On average, the economy will shrink slightly this year, but will grow by almost two percent next year and three percent in 2026. :format(webp)/nginx/o/2023/11/07/15704734t1h7e8a.jpg)
Grocery basket. Photo: Arvo Meeks, Valgamaalane
According to the latest economic forecast of the Bank of Estonia, the economy has started to recover, but at a slow pace. On average, the economy will shrink slightly this year, but will grow by almost two percent next year and three percent in 2026.
Price growth will remain in the 3.5-4% range this year and over the next two years as tax increases accelerate in the short term. Getting rid of persistently high deficits will not be easy, but it is important because healthy public finances provide a better foundation for long-term economic growth.
The Estonian economy is on the road to recovery. Several sectors that had been experiencing difficulties have shown signs of improvement, including some sectors of the manufacturing industry, where production volumes are no longer declining and have already started to grow. Estonian exports have already increased slightly in the first half of the year. The situation in Estonia's main export markets is expected to improve, which will create the basis for further growth in the export of goods and services.
