IMF Staff Country Reports

Republic of Estonia: Selected Issues

Publication Date:

December 14, 2015

Electronic Access:

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Summary:

This Selected Issues paper analyzes income convergence and medium-term growth potential for Estonia. Estonia’s potential growth is projected to average some 3 percent over the next five years and 2.75 percent over the next two decades, implying continued income convergence with European Union levels, albeit at only half its historical pace. A number of policy enhancements could lift growth above this central projection. These include a greater operational policy focus on raising productivity growth, scaling up a number of envisaged pro-growth programs, supporting the upgrading of traditional industries as a second leg of innovation policy, and fully restoring Estonia’s high investment.

Series:

Country Report No. 2015/337

Subject:

Aging Education Labor Labor force participation Population and demographics Production Productivity Total factor productivity