Coronavirus restrictions could be costing the state between €7 million and €19 million every day, according to experts. Lifting restrictions alone would also not spell immediate economic recovery either.
Investor and businessman Risto Rossartold daily Eesti Päevaleht(link in Estonian) last week that in his estimation, restrictions on every working individual in Estonia cost the state €712 per month, taking into account Gross Domestic Product (GDP), borrowing and also, with reservations (since Estonia is part of the eurozone and so not in full control of money supply) the printing of money.
When totaled, the restrictions cost the state €19 million per day, Rossar said.
Naturally this was just an estimate; concrete figures Rossar took into account in his calculations included the combination of a GDP fall of €1.57 million last year, together with €2.47 million government borrowing and Estonia’s €2.9 billion share of the euro money supply.
Of the latter, Rossar said: “With printing money, there is an interesting trick which makes it really a sort of tax on savers and wage earners. It [also] entails a massive withdrawal of money from people who don’t own property, and is directed towards those that do.”
Finance ministry analyst: Factoring in boost to money supply doesn’t give accurate picture
Read more: ERR.EE