The Bank of Estonia (Eesti Pank) has issued its summer economic forecast, saying that economic growth for 2021 could be as high as 8.2 percent in a ‘sharp growth’ scenario, or stand at 5.3 percent in a more conservative estimate, adding that Estonia has demonstrated one of the most rapid bounce-backs from the economic effects of the COVID-19 pandemic of any European country.
This would translate to higher growth in 2022 (4.9 percent) in the less steep growth forecast for 2021, or, in the more rapid growth scenario, conversely a lower rate of growth (3.8 percent) for next year.
The central bank’s deputy governor, Ülo Kaasik, said that: “If we look at the world economic growth as a whole, the growth rates indicate that this year we will reach a level of economic growth that is higher than before the crisis.”
Estonia’s recovery after the downturn brought by the pandemic has been among the most rapid in Europe, second only to Ireland, growing by 3.3 percent between the final quarter of 2019 and the first quarter of this year.
After setbacks caused by restrictions, economic growth is set to be strong in the second half of the year, boosted by the utilization of savings amassed during the crisis and those liberated from the so-called second pillar of the Estonian pension scheme, as well as improvement on the foreign markets.
The central bank had forecast growth of 2.7 percent in its spring outlook, but has since revised this in an upward direction.
Read more: ERR.EE