Bank of Estonia governor Madis Müller said growth forecasts previously made in the summer by the bank would be revised for 2019 and 2020.
Speaking to Andres Kuusk on ETV's "Esimene stuudio," Müller said the forecasts would be revised to 3 percent and then to 1.9 percent next year.
The forecasts predicted in the summer were slightly stronger at 3.3 percent for this year, and 2.1 percent for 2020. He said this was due to the global economic outlook.
"The downturn is clear, and it follows that if major economies in Europe are slowing down in terms of economic momentum. Germany clearly has a problem with industrial challenges today and, in general, the global economy as a whole is shrinking and growth is stalling. In the end, it will affect us too," Müller said.
Muller added that if economic growth slows down, price increases are also likely to be slower.
"Our latest estimate is that if the average price increase for consumers this year is close to 2.3 percent, it could fall below the two percent average over the next two years," Müller said.
Editor: Helen Wright