IMF Staff Country Reports

Republic of Estonia: 2023 Article IV Consultation-Press Release; and Staff Report

Publication Date:

July 28, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Estonia has made remarkable progress over the past two decades, achieving steady convergence towards more advanced EU economies. However, signs of erosion in external performance have emerged in recent years, reflecting rapid growth in unit labor cost and real exchange rate appreciation. Russia’s invasion of Ukraine triggered a large rise in inflation, supply chain disruptions and slower growth in key trading partners in the Baltic region. In Estonia, these developments, combined with fiscal tightening in 2022, have led to a sharp economic downturn, while deceleration in productivity has exacerbated competitiveness erosion.

Series:

Country Report No. 2023/275

Subject:

Fiscal policy Inflation International organization Labor Labor markets Monetary policy Prices Taxes Value-added tax Wages

Frequency:

regular