May 2005
Emerging Europe Monitor: Central Europe & Baltic States;May2005, Vol. 12 Issue 5, p10
Country Report
Country Report
This article presents the economic forecasts for Estonia in fiscal 2005 and 2006. Real gross domestic product (GDP) increased in 2004 due to robust private consumption and investment demand, and a strong pick-up in export activity. A recovery in the global telecommunications sector also contributed to the GDP growth. Improvements in stock building contributed 0.6 percent to the 2004 growth rate. Business Monitor International expected the economy to decline slightly in 2005 due to a deceleration in private consumption growth. Export growth is also expected to slow due to poor demand for electronics. Fiscal policy is expected to support demand through tax reductions and increased investment spending financed in part by European Union structural funds.


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