European Commission raises Estonia 2019 growth forecast to 3.2 percent ({{contentCtrl.commentsTotal}})

Pierre Moscovici, European Commissioner for Economic and Financial Affairs, presented the economic forecast.
Pierre Moscovici, European Commissioner for Economic and Financial Affairs, presented the economic forecast. Source: EPA / Scanpix

The European Commission has upped its growth forecast for the Estonian economy in 2019, from 2.9 percent in July, to 3.2 percent in its latest prognosis.

At the same time, BNS reports, the commission lowered its 2020 forecast by two percentage points, to 2.1 percent growth.

The commission's growth forecast for 2021 remains set at 2.4 per cent at the moment.

Strong private sector investments and a flexible labor market have behind much of Estonia's growth for the first half of 2019, the commission said.

Growth in the Harmonized Index of Consumer Prices (HICP) is estimated to decelerate from 3.4 percent in 2018 to 2.4 percent in 2019, mainly as a result of low global energy prices, BNS reports, while service prices will continue to increase rapidly, reflecting rapid wage growth. In 2020 and 2021, inflation is forecast at slightly over 2 percent.

The changed growth forecast goes against what the commission expects for the eurozone as a whole, however. The 19 countries on the Euro have a forecast growth of 1.1 percent by the latest estimates, down from 1.2 percent in July.

The commission similarly expects growth of 1.2 percent for 2020 across the eurozone as a whole, compared with the 1.4 percent it forecast in July. It points the finger at Brexit, geopolitical tensions and global trade conflicts in apportioning causes of the latest slower-than-expected growth predictions.

Download the ERR News app for Android and iOS now and never miss an update!

Editor: Andrew Whyte

Hea lugeja, näeme et kasutate vanemat brauseri versiooni või vähelevinud brauserit.

Parema ja terviklikuma kasutajakogemuse tagamiseks soovitame alla laadida uusim versioon mõnest meie toetatud brauserist: