No discipline no growth: why fiscal rigor is necessary
The IMF recommends that getting competitiveness back on the track of growth needs decisive fiscal consolidation and increasing productivity.
The IMF recommends that getting competitiveness back on the track of growth needs decisive fiscal consolidation and increasing productivity.
Additional problems arise when the state softens the recession, widening the budget deficit with additional money into the economy.
Estonia should build on the competitive advantages of an efficient business environment and wide digital experience to escape stagflation.
Progress in FDI attraction comes even within the public sector, where Wroclaw, Vilnius, Tallinn set a benchmark for business-friendliness.
Every euro invested in wetland restoration can generate a return between €8-€38 as future savings, with a positive impact on biodiversity and climate.
Profit as a share of assets was around 60% higher in 2023, but now interest- and administrative expenses are likely to grow, as well as overdue loans.
Market expectations of rapid disinflation remain, but underlying risks come from commodity costs, monetary supply, and trade protectionism.
Estonia is holding strong with €75M attracted FDI with energy & climate the hottest categories. Now the plan is to reach 500 DeepTech startups by 2030.
Estonia’s FinTech success (+42% income) is attributed to local digital infrastructure, people capital, and the world’s best tax system.
The current decline in Estonia’s exports is more a reflection of the weakness in foreign markets and the problems with competitiveness.