The Ministry of Finance expects 1.7 percent economic growth in Estonia this year and inflation 5.2 percent, according to the latest economic forecast.
Minister of Finance Jürgen Ligi (Reform) said Estonia’s economy has been in better shape than public opinion might suggest. “The bleak despair has not matched the actual situation of people and businesses,” he said.
“At the same time, confidence assessments have been disproportionately low, comparable to those during deep crises, even though employment has remained high, and wage and pension growth has been significant in real terms,” the minister added.
Ligi said the biggest impacts on the economy have been the disruption of business relations due to war, rapid inflation, price increases, and a decline in export demand, not from tax hikes.
He pointed out that the economic downturn began before taxes were raised, and that the recovery started after those increases.
More read: ERR.EE