IMF Staff Country Reports

Republic of Estonia: 2013 Article IV Consultation

Publication Date:

May 13, 2013

Electronic Access:

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Summary:

Estonia has succeeded in reducing its macroeconomic imbalances and vulnerabilities, but faces the challenge of preserving its hard-earned fiscal and financial stability and enhancing long-term growth prospects. In this regard, adopting a fully fledged medium-term fiscal framework can help assess policy trade-offs and avoid procyclical policies. Financial sector stability can be safeguarded by strengthening macroprudential policies. Deeper Nordic-Baltic cross-border prudential arrangements and the EU banking union can enhance financial stability. Estonia needs to safeguard its external competitiveness, address skill mismatches, and accelerate human capital accumulation.

Series:

Country Report No. 2013/114

Subject:

Banking Expenditure External debt Financial derivatives Financial institutions Inflation Prices Public debt