Estonia’s GDP growth will accelerate from 0.5% in 2025 to 1.8% in 2026 and 2.7% in 2027, the Organisation for Economic Co-operation and Development (OECD) forecasts, ERR reports. The growth will be driven by looser fiscal policy and investment, the report said. Annual inflation will fall from 4.8% in 2025 to 4.1% in 2026 and 2.6% in 2027, the OECD projects. However, higher energy prices were adding to inflationary pressures, the report warned. OECD chief economist Stefano Scarpetta noted that Estonia’s economy remained “fundamentally sound” with a strong business climate, a resilient labour market, and a solid fiscal framework.
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