Governor of Eesti Pank Ardo Hansson recently said that Estonia is at a very different stage of economic development from where it was over the last decade and is expected to see annual growth of 3-4 percent going forward.
"The surprisingly slow pace of economic growth in the first half of the year in Estonia was not broadly based but was the result of increased competition in transport and warehousing," Hansson said Wednesday at the Ariplaan 2014 conference. "Our manageable growth level of 3-4 percent could be achieved next year. Although growth will be slower than it has been for the past decade, it will still be noticeably faster than in the rest of the euro area."
Hansson also said that slower growth than before and lower inflation will mean that nominal income growth for companies will be slower in the future.
"This means that companies should be more vigilant about cost growth, as there is a risk of wage pressures coming from a tightened labor market," Hansson said.
Hansson added, however, that Estonia has the lowest sovereign debt in Europe.
"We are exiting the crisis without an increased burden of debt and this means that job-creating enterprises can trust in the stability of the tax system," Hansson said.
More Stories
- EUROPEAN INVESTMENT BANK: Bosnia and Herzegovina: EIB provides €340 million to advance works on northern part of Corridor Vc
- ABN AMRO SERVICES COMPANY: Fempower Your Growth: like tindering with female entrepreneurs
- EUROPEAN INVESTMENT BANK: Egypt: Team Europe - EIB and Banque Misr work together to support private businesses and speed up the recovery of SMEs from COVID-19
- ASIAN DEVELOPMENT BANK: ADB, NNS Sign Loans to Build Milestone Solar Power Project in Uzbekistan
- ASIAN DEVELOPMENT BANK: $123 Million ADB Loan to Help Build Elevated Walkways in Manila
- EUROPEAN INVESTMENT BANK: Germany: EIB provides €15 million of funding to IDnow
- ASIAN DEVELOPMENT BANK: CAREC Endorses Long-Term Strategy to Promote Safe, Sustainable, and Inclusive Tourism
- EUROPEAN INVESTMENT BANK: EIB Group provides €150 million to support artificial intelligence companies
- ASIAN DEVELOPMENT BANK: ADB Approves $430 Million to Help Rehabilitate Power Distribution Networks in Uttar Pradesh, India
- EUROPEAN INVESTMENT BANK: Greece: EIB backs EUR 470 million road safety scheme