Government Predicts 7% GDP Growth for 2011
Though the Ministry of Finance has yet to release its official prognosis for the nation's economy, Prime Minister Andrus Ansip said on September 1 that there are no surprises in store and that the government's forecast for this year's GDP growth is an even 7 percent.
"Forecasts published yesterday by commercial banks concluded that this year's economic growth would be higher than expected, but next year the growth will start to decline. The Ministry of Finance is of the same opinion," Ansip said at this week's Cabinet press conference.
As was the case with recent bank forecasts, the latest government prediction was radically higher than it was in spring, when the ministry announced it was expecting a 4 percent growth for the year.
Year-on-year GDP growth hit 8.5 percent in the first quarter of 2011 and, according to Statistics Estonia's flash estimates, 8.4 percent in the second quarter.
On August 31, Nordea bank pegged the nation's 2011 GDP growth at 7.5 percent. A week earlier Swedbank forecast 6.7 percent.
The Ministry of Finance is scheduled to publish its outlook on the Estonian economy on September 7.
Steve Roman