The latest economic forecast from Eesti Pank finds that the recession in the Estonian economy will last for longer than previously thought, mainly because Estonia’s export markets are in a poor position and competitiveness has been lost. The forecast expects the Estonian economy to shrink by 3.5% this year and by 0.4% in 2024, while faster growth is expected from 2025. The shrinking economy will see unemployment rise a little next year, though people’s purchasing power will improve as inflation has backed off.
