Estonia’s economy will grow by 2.6 % in 2021, the European Commission has forecast. The figures represent a climb-down from 6.2% predicted for 2021 last summer, and also depends on a gradual reduction in coronavirus restrictions.
The commission said last year the economy contracted by 2.9%, again a lower figure than forecast in summer 2020, when a decline of 7.7% was predicted.
Private consumption and exports have been resilient to the economic effects of the coronavirus crisis, the commission says, while accommodation and catering have been the hardest-hit sectors.
For 2022, the European Commission is forecasting growth of 4%.
Household and private consumption and investment in Estonia itself are seen as a driver in growth and are in relatively good shape, the commission says, while inflation will move into the positive at 1%, but go no higher, partly due to a slump in the labor market.
Deflation was experienced at times in 2020, while inflation for the whole year was just 0.6% in Estonia, the commission says. (ERR/Business World Magazine)
