OECD Raises Economic Growth Forecast to 5.9%
In its Economic Outlook report, released May 25, the Organization for Economic Cooperation and Development (OECD) raised its forecasts of Estonia's economic growth to 5.9 percent in 2011 and 4.7 percent in 2012.
The figures mark a significant change from the 3.4 percent and 4.1 percent that the OECD had predicted just last month.
The rosier figures come one week after Stockholm-based Nordea Bank changed its 2011 growth forecast to 5.7 percent, up from the 4.2 percent it had predicted in January.
The OECD further predicted that consumer prices will rise 4.6 percent this year, slowing to 3 percent growth next year.
Unemployment, however, is expected to remain high – averaging 14.2 percent in 2011 and 13 percent in 2012.
The OECD predicted that the trade growth Estonia has been experiencing over the last year would continue for the time being, tapering off next year. The forecast put 2011 export growth at an even 20 percent and 2012 growth at a more modest 8.6 percent. Imports, meanwhile, are predicted to be 15.2 percent this year and 9.2 percent next year.
Estonia joined the OECD in December 2010.