Analytics, Economics, Estonia, Financial Services, GDP

The ministry predicts a growth of 2.8% for the year 2016. In autumn it forecast 3.5% growth.

The Ministry of Finance has revised this year's and next year's growth forecasts downwards, mainly due to the worsening outlook for growth of Estonia's main trading partners. The forecasts of the following years (from 2017) have not been changed.

The average salary will grow according to the forecast by 4.8% this year, it is revised down in relation to the weaker-than-expected increase in consumer prices. Assuming that the external demand picks up, next year the growth rate of nominal wages should accelerate; the real wage growth taking into consideration inflation will be 3% per year.

Consumer prices will decline in the first half of this year. In 2015, consumer prices will rise 0.2% altogether. In 2016, inflation accelerates to 2.2%.

The unemployment rate continues to fall, being less than 6% starting next year.

Estonia's structural fiscal position in the coming years will be still balanced. Nominal general government deficit is projected to remain at 0.5% of gross domestic product (GDP). In 2016 it increases to 0.6% of GDP. By 2018, it should reach a surplus of 0.1% of GDP.