e-Estonia: innovation can free us from the wage-price spiral
The example of Estonia suggests that the focus on an efficient allocation of resources works more effectively than a stimulus of demand.
The example of Estonia suggests that the focus on an efficient allocation of resources works more effectively than a stimulus of demand.
Estonia showed one of the fastest recoveries from the crisis with an economic growth of 8%. However, a slow down is now expected.
In Estonia, inflation of 7% in October was caused by a sharp rise in energy prices and blockages in the supply chain. Demand is driving an economic growth.
Many unemployed have a background in sectors affected by the pandemic: the skills of job seekers often do not correspond to the new needs.
The offshore wind farm is a joint Estonia-Latvia project with a total capacity of 700-1000 MW, and will provide over 3 TWh of renewable energy per year.
Energy prices are 22% higher and inflation will be maintained in the coming months by rising prices on the global market for raw materials and imported goods.
Already in 2012, Estonia’s 1.3 million residents could use electronic ID cards to vote, pay taxes and access more than 160 online services.
Estonian GDP decline has actually remained at 3%, thanks to innovative progress in the digitalization of services and milder restrictions.
Despite the employment rate among 15- to 64-year-olds at 75.2%, the country faces a shrinking workforce and regional disparities.
While the reduction in foreign demand was responsible for two-thirds of the 2020 recession, industry and ICT will rebound this year.