Estonia’s GDP will grow by 3.6% in 2026, but economic growth will slow down to 2.5% by 2028, according to the Bank of Estonia’s latest forecast, ERR reports. Growth in 2026 will be driven by increased exports and government stimulus, the central bank said. The general government budget deficit will be the largest in 30 years, excluding the coronavirus pandemic period in 2020. The Bank of Estonia expects the deficit to remain substantial through 2028. The state’s public debt will reach 31.5% of GDP by 2028. The rise in consumer prices will slow down from 4.9% in 2025 to 2.9% in 2026 and 2.4% in 2027, the central bank forecasts. Average net wages will rise by about 10% in 2026 due to income tax changes.
Read Less, Know More.