TITLE

ESTONIA: RISK SUMMARY

PUB. DATE
November 2005
SOURCE
Emerging Europe Monitor: Central Europe & Baltic States;Nov2005, Vol. 12 Issue 11, p10
SOURCE TYPE
Country Report
DOC. TYPE
Country Report
ABSTRACT
The article focuses on the political, economic and business risks of Estonia. Parliament returned from its summer break in September to debate a supplement to the 2005 state budget and begin deliberating the draft budget for 2006. The supplementary budget allows for additional expenditure of EEK1.9 billion and is afforded by Ministry of Finance estimates that annual revenues will exceed the planned level by EEK2.1 billion owing to strong economic growth and improved tax collection. Real GDP grew by a faster-than-expected 9.9% year-on-year in quarter 2, from 7.2% in quarter 1, driven by a jump in net exports and robust domestic demand. Wages are growing faster than productivity, potentially undermining international competitiveness, and the ratio of private sector debt-to-GDP has reached 90%.
ACCESSION #
18561493

 

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