Estonia’s GDP growth will reach 0.6% in 2025, according to the latest economic forecast from the Bank of Estonia, Estonian World reports. In June 2025, the central bank forecast that the GDP would rise by 1.5% in 2025. The central bank expects Estonia’s economy to grow by over 3% in 2026 and 2027, boosted by the government’s financial stimulus measures. The central bank warned against using the maximum state budget deficit allowed by the EU’s escape clause, given that the country’s economy has been recovering since the middle of 2024. Wages will rise by over 8% in 2026. Annual inflation will reach 5.3% in 2025 amid higher production costs and taxes. Inflation will drop to around 2% in 2026 and 2027, according to the forecast.
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