Nestor said Estonia's economic downturn has been invisible as, while the economy declined for two years, salaries rose by 11 percent and unemployment did not rise significantly.

The recession has now reached its peak, and the situation is slowly getting better, although no visible jump is expected, he said.

"The rise will be as invisible as the fall was. No boom or bust is on the horizon," the analyst told ETV's "Terevisioon".

Nestor also discussed the changes to land tax. Amendments approved by the government will remove exemptions and allow local governments to set higher rates.

Nestor does not believe municipalities will suddenly raise taxes.

"Local governments are run by politicians who want to get re-elected. Yes, you have the opportunity to fill your budget with a land tax increase, but you also have the opportunity to annoy voters. So the municipal leaders are in a bind – the state has given you a chance, but on the other hand, it is going after your own voters," he said.

The analyst also does not think the land tax will increase sharply.

"I think the changes will be modest for the time being. This does not seem a sensible way for a politician to go into the next election," he told the morning show.

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