
Only hope remains when market distortions are even stronger
Market expectations of rapid disinflation remain, but underlying risks come from commodity costs, monetary supply, and trade protectionism.
Market expectations of rapid disinflation remain, but underlying risks come from commodity costs, monetary supply, and trade protectionism.
The core inflation is persistently higher than headline, while expansionary fiscal policy increases the pressure and weaken the competitiveness.
The current decline in Estonia’s exports is more a reflection of the weakness in foreign markets and the problems with competitiveness.
In an open system, economic transformation led by the freedom of private initiative requires to focus on the amelioration of market exchange.
The transparency in public finance is key for better controlling public spending: with 5.5-6% of GDP Warsaw has the highest deficit in the EU.
Estonian banks’ profits have grown fast when the income on loans linked to Euribor increased. Now risks come from loan losses at the window.
Estonia receives more financials from abroad than it is investing: services exports drop (-2% YoY), and the consolidated debt grows +9% YoY.
The new business guide from LIAA helps investors and professionals by integrating into the labour market, local culture, and community.
Inflation will close to 9%, while the low estimates of competitiveness in Germany and Finland deepen the economic uncertainty.
Estonian GDP shrank by 2.9% YoY: about 40% of the value created by companies is intended for export, which since last year has lost competitiveness.