Estonian Institute of Economic Research (Eesti Konjunktuuriinstuut) published yesterday its half-year survey, which underlines that Estonia’s current economic state has remained good for the eighth quarter in a row. At the same time, the economic confidence index, which reflects business confidence in the European Union and Estonia, is on a downward trend.
Compared to March this year, when the current state of the economy was concidered good for 88% of respondents, the current economic situation in June has improved. 61% of experts estimate that economic situation remains the same for next 6 months. However, 33% of experts consider it possible for the economic situation to worsen.
According to fresh statistics, the Estonian economy grew by 4.5% in the first quarter. Exports of goods and services, productivity and wages also increased by 4.6%, 2.7% and 8% respectively.
According to Marje Josing, director of the Estonian Institute of Economic Research, the study shows big differences between industries. "The confidence in the retail and service sectors, which are more directly related to consumer and private consumption, is good, but the confidence in industry and construction has fallen below long-term average," Josing noted.
Economic development continues to be hindered by political instability, shortage of qualified labour, lack of innovation, low confidence in the government's economic policy and scarce international competitiveness.
According to the Institute, the state of the economy will deteriorate somewhat in the coming six months, but will still remain favorable.