Estonian Finance ministry estimates 2.5 percent economic growth for 2021

The Ministry of Finance estimates Estonia’s economic growth for the ongoing year to stand at 2.5 percent and 4.6 percent for 2022, if the spread of COVID-19 is under control and vaccinations proceed to go forward as planned.

Minister of Finance Keit Pentus-Rosimannus (Reform) said the coronavirus economic crisis was shorter and more lenient than feared. “Coming out of an unprecedented budgetary hole requires long-term effort and an iron will,” the minister said at a press conference on Monday.

Scarce budget opportunities should be used to make changes for a more efficient public sector, the minister added. “If we get vaccinated well and fast and the organization does not become an obstacle, the economy will grow by 2.5 percent this year and even 4.8 percent next year,” Pentus-Rosimannus said.

The ministry’s forecast is slightly more conservative than that ofBank of Estonia’s , which predicted an increase of 2.7 percent for 2021 and 5 percent for 2022.

The forecast was drawn up with getting the virus under control and no more strict restrictions in mind. “We must certainly consider going forward that growth expectations are tied to getting the virus under control, vaccinations and easing restrictions,” the minister noted.

Read more: ERR.EE

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