Published: September 29, 2010
Central bank increases 2010 and 2011 forecasts.
Exports have helped Estonia’s recovery gather pace, but the effect from its trading partners’ growth is likely to be short-lived, according to the country’s central bank.
In an economic policy statement issued today, the Bank of Estonia has increased its GDP growth forecast for this year to 2.5% from 1%. It has increased its forecast for 2001 to 4.2% from 4.1%.
Nonetheless, it says “the temporary post-crisis normalisation in the world trade situation is nearing its end”. It adds: “The volume of the economy will remain below pre-crisis levels over the next years and the next quarters' rapid expansion compared to 2009 is of one-off nature, since external demand growth is slowing.”