Republic of Estonia : 2019 Article IV Consultation
Press Release; Staff Report; and Statement by the Executive Director for Republic of Estonia
Series:Country Report No. 20/12
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Publication year: 2020
Cdn: $25.00; US: $18.00
The economy has performed well in recent years, supported by prudent management and effective structural reforms. Growth remains strong and unemployment is at a record low. Inflation is above the euro-area average, consistent with Estonia’s convergence process. Wages are rising, reflecting a tight labor market and skill shortages at the high end of the labor market. Absent reforms to boost productivity and manage demographic challenges, however, growth will slow notably. The authorities need to guard against potential overheating in the near term while taking advantage of sizable fiscal buffers in the medium term to support innovation and labor supply and reduce inequality.