The results of the third-quarter economic survey were not very encouraging, as they indicated increased uncertainty among both consumers and businesses, with rising prices likely to continue. Erkki Keldo stated to ERR that such results were expected.

"When we consider the period during which the economic analysis took place – specifically, the first half of September – there was a public discussion about what the future fiscal policy of the state would look like and what the economic policy would entail. I would dare say that since those surveys, there have been positive messages as well," he remarked.

Keldo cited that the government has agreed on the defense tax package, and the prime minister has confirmed that for the next two and a half years, there will be a tax peace for entrepreneurs and others, allowing them to make investment decisions.

"Another significant issue that emerged from the survey was the low demand for exports. We are aware of the unfortunate situation in the markets of our key export partners, Finland, Sweden and Germany. However, we have agreed that every two weeks we will hold an economic cabinet meeting in the government to discuss exactly these issues – how to support our businesses in export markets and how to attract more investments here," the minister listed.

Keldo added that following the economic institute's analysis, the government has decided to launch a major investment package, increase the defense fund's budget and focus on export activities.

"Several issues highlighted as concerns in the survey will certainly be prioritized by the current government," he affirmed.

Keldo explained that the low level of trust in the government is due to the complex situation in Europe. People are worried about the future, as Europe is experiencing a full-scale war, there have been energy and COVID-19 crises and a rapid rise in interest rates.

"When we take all of this into account, it is entirely understandable that people feel uncertain. On the positive side, we have seen that inflation has actually stagnated over the past year; we are talking about a 2 percent inflation rate by the end of the year. Real wages have increased as a result, meaning people's incomes have risen," Keldo noted.

He also pointed out that the declining Euribor rate is leaving more money in the hands of Estonians, allowing entrepreneurs to consider new investments.

"Indeed, the economic institute's survey indicated that over the next six to twelve months, people are rather optimistic and see improvement ahead," the minister of economic affairs and industry acknowledged.

Regarding why the Ministry of Economic Affairs and Communications (MKM) did not make the survey results public at the beginning of October, as has been customary, Keldo said that since the survey was conducted by the independent Estonian Institute of Economic Research, they have the right to decide when to publish the results.

Keldo mentioned that in the past, survey results have been released in various ways – sometimes through press releases, other times via joint press conferences with the institute. The decision has depended on the amount of new information and changes revealed by the survey.

"There has been nothing obstructing the ministry, and the ministry will also issue its own press release in the coming days," he confirmed.

However, Keldo acknowledged that typically survey results are published in October, but currently, due to significant discussion topics arising from the launch of the economic cabinet, there has not been an opportunity to coordinate work on the survey.

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