Analytics, Economics, Estonia
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Friday, 22.11.2024, 18:45
Estonia’s economy is not yet facing decline
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The negative economic growth of – 1.4% in the second quarter of 2008 was to be expected and the general state of the economy is to be expected in the beginning of the coming year, noted the ministry in its comment on the economic growth indicator published on Wednesday.
According to the Ministry of Finance, the restoration of the economic growth depends on the improvement of the exports capacities and on the invigoration of the real estate sector.
The positive aspect in deceleration of economic growth is the lowering of the current account deficit caused by the fall in domestic demand and the growth in foreign debt is also slowing down.
Better availability of unemployed labour force will make it possible for entrepreneurs to choose their workers and is slowing down pay growth that has thus far accelerated significantly faster than productivity. The ministry stated that the developments in Estonia’s economy have become more balanced and the economy is slowly adjusting to changed environment.
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