
No monetary pumping, no inflation nor wealth erosion
In Estonia, consumer prices rose 21.9% in June over the year, whereas the share of energy in the consumer basket is higher only in Latvia.
In Estonia, consumer prices rose 21.9% in June over the year, whereas the share of energy in the consumer basket is higher only in Latvia.
In May, inflation in Estonia touched 20% over the year, with higher energy costs being passed through to the prices of goods and services.
In Q1 employment in Estonia rose by 5.1% YoY, giving hope on the ability to absorb the shock of a fiscal and monetary tightening.
Although growth in employment accelerated, and the restrictions did not deliver any major setback, the labor force participation rate fell.
Following a record GDP growth (8.5%) in 2021, the Estonian economy will slow in 2022, still maintaining a strong pace (+4%).
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.