Estonia's economy forecast to grow 1 pct this year
Aug 24, 2022
Tallinn [Estonia],August 24: Estonia's economy is forecast to grow by 1 percent this year and 0.5 percent in 2023, the country's Ministry of Finance said on Tuesday.
In its summer economic growth forecast, the ministry said that economic growth will slow in the second half of 2022, and certain sectors may even face a recession. Overall, however, the country's economic growth for the year will reach 1 percent.
This year and next, the country should prepare for steep price increases, which will restrain consumption and investment, the ministry said. Domestic demand will remain very low and will only begin to recover in the second half of 2023.
Inflation in Estonia will remain at 19.5 percent this year before slowing to 6.7 percent in 2023, the forecast said.
In its April 2022 forecast, the ministry expected the country's economy to shrink by 1 percent this year and grow again by 1.2 percent in 2023.
"While back in spring we were preparing for a recession, what we're seeing now is that Estonia can expect a positive result for the year overall," Finance Minister KeitPentus-Rosimannus said. "Compared with the spring forecast, the latest forecast indicates a better budgetary position as well."
The ministry expects wages to rise 11 percent this year and 7.4 percent in 2023. While the average monthly wage in Estonia stood at 1,548 euros last year, it is expected to increase to 1,718 euros this year and 1,845 euros next year, Estonian Public Broadcasting reported. (1 euro = 1 U.S. dollar)
Source: Xinhua
