Republic of Estonia: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Estonia

January 13, 2017

Preview Citation

Format: Chicago

Republic of Estonia: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Estonia, (USA: International Monetary Fund, 2017) accessed September 27, 2024

Summary

This 2016 Article IV Consultation highlights that Estonia’s recent growth has been subdued. Labor productivity and external competitiveness have weakened. Growth in 2016 is estimated at only 1.3 percent, driven mainly by private consumption on the back of strong wage growth in a tightening labor market. Exports are gradually recovering, but investment continues to contract. Import growth is accordingly low, keeping the current account in small surplus. Inflation rose moderately to about 1 percent. The economy should gradually strengthen going forward, as the external environment improves and existing pro-growth policies come to fruition. Growth is projected at 2.3 percent and 2.8 percent for 2017 and 2018, respectively.

Subject: Labor, Labor costs, Production, Productivity, Public debt, Wages

Keywords: Authorities' direct control, Baltics, Buffer requirement, Central and Eastern Europe, CR, Estonia, Estonian authorities, Europe, Global, Government, Government program, Import growth, Investment, ISCR, Labor costs, Labor market, Labor market development, Productivity, Productivity gain, Wage growth, Wages, Western Europe

Publication Details

Pages:

48
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/009
Stock No:

1ESTEA2017001
ISBN:

9781475565881
ISSN:

1934-7685

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