Analytics, Estonia, Financial Services, Society, Wages

"Gross wage growth will slow somewhat, however, due to the decline in labour taxes and modest rise in prices, the real purchasing power of households will rise significantly. In the first quarter, the real net wage growth reached 7%," estimated the analyst.

The wage level is increased by the state's measures too: minimum wage growth and higher wages in the public sector. Social benefits increase gives an additional contribution to consumption.

According to Elmik, consumption is a good support to the economic growth at a time when exports and investments increase modestly. The volume of retail sales rose in the first quarter year-on-year by a whole 8%.

Swedbank estimated also that the slowdown in the growth of gross wages during the first quarter of this year, 4.5% year-on-year, was in line with expectations.