Retail Grows Despite Slumping Consumer Confidence
Economic Affairs Ministry chief analyst Karel Lember says the main factor keeping retail sales from being even higher is pessimism caused by the debt crisis.
Statistics Estonia released figures showing retail grew 4 percent year on year in September, and both Lember and Annika Paabut, a leading analyst from Swedbank said growth most likely continues.
Lember said October would see the growth trend continue, but last year's November and December saw a high baseline level.
But, he added, people are not out of money and the situation on the job market does not seem inconsistent with more growth.
"Faster growth seems to tend to be stuck behind people's cautiousness, as the finance crisis in Europe has not been resolved and people do not dare increase their spending."
Swedbank's Paabut also said retail sales would continue to grow, mainly by increased inflow of tourists and the improved job market.
An October survey by the Institute for Economic Research found that consumer confidence continued to decline.
Kristopher Rikken