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…
One of the prime architects of the restoration of Estonia’s independence, Siim Kallas, has died at the age of 77 years, his daughter, EU foreign policy chief Kaja Kallas, announced, ERR reports. Kallas served as president of the Bank of Estonia in 1991-1995, member of the Estonian parliament, the Riigikogu, in 1995-2004 and 2019-2024, foreign…
Estonia’s annual inflation may drop below 4% in 2026, the Ministry of Finance forecasts, ERR reports. Kristjan Pungas, economic analyst at the ministry’s fiscal policy department, linked the projection to the easing of the conflict in the Middle East. He noted that Estonia’s inflation rate was one of the lowest in the eurozone in June…
Banks in Estonia made a net profit of EUR 356mn in the first half of 2026, which was almost the same as a year earlier, according to Taavi Raudsaar, economist at the Bank of Estonia, Baltic News reported. The total loan portfolio of banks amounted to EUR 30.0bn, which was up by more than 8%…
Every major party in Estonia has added to the state’s debt burden, according to Kaspar Oja, senior economist at the Bank of Estonia, ERR reported. While the biggest budget deficits emerged during the coronavirus pandemic, Estonia has had structural deficits every year since 2017, Oja noted. His analysis found that when in government, the Conservative…
Estonia’s GDP growth will reach 2.4% in 2026 and remain close to 2.5% in 2027 and 2028, according to the Bank of Estonia’s latest forecast, ERR reports. In March 2026, the central bank had projected annual GDP growth of around 2.8%. Strong fiscal stimulus will boost economic growth in 2026, with increased household and public…
Estonia’s consumer price index rose by 3.7% on year in May 2026, according to Statistics Estonia, ERR reported. Consumer prices of goods rose by 3.1% and services by 4.6%. The increase in prices was influenced the most by a 10.4% rise in transport costs and 5.4% rise in housing-related costs, both driven up by higher…
Estonia’s exports of services totalled nearly EUR 3.3bn in the first quarter of 2026, which was up 4% from the same period of 2025, according to data from Statistics Estonia and the Bank of Estonia. Imports of services totalled around EUR 2.5bn, which was unchanged over a year. Estonia’s trade balance in services showed a…
Estonia’s Finance Minister, Jürgen Ligi, vowed to defend budget discipline and push back against populist spending proposals ahead of the parliamentary elections in March 2027, ERR reported. Ligi said that the country’s political culture had deteriorated badly, and acknowledged that populism had crept into his own Estonian Reform Party as well. He insisted on the…
