Estonia’s annual GDP growth will reach around 2.5% in 2026, 2027, and 2028, the Bank of Estonia forecasts, Estonian World reports. The country’s economic recovery is driven by increased household consumption following tax changes, higher government spending financed by borrowing, and stronger manufacturing exports. The central bank urged to boost productivity and competitiveness. The biggest risk to growth is inflation amid higher global energy prices. The Bank of Estonia urged the government to take further action to reduce the budget deficit, which could otherwise exceed EUR 2.2bn in the coming years. The central bank called for a cross-party agreement on curbing the budget deficit and national debt.
Headlines