Analytics, Economics, Estonia, EU – Baltic States, GDP

According to the OECD report published on Monday, growth in Estonia is projected to strengthen gradually in the coming two years. It will be supported by an upswing of investment and exports, which will benefit from stronger growth in the EU. Private consumption will grow in line with real household income.

Estonia's growth this year is seen to be slower than the OECD average, which is estimated to be 2%, while potentially surpassing OECD average growth in 2016, when OECD economies are estimated to grow 2.2%.

Estonia's growth is expected to be faster than growth in eurozone countries on the average, however, which is estimated to hit 1.5% this year and 1.8% in 2016.

The unemployment rate in Estonia is estimated to decline from 7.3% in 2014 to 6.4% this year and further to 6% in 2016. Unemployment is set to be remarkably lower than in the euro area on average, which is estimated to be 10.9% this year and 10.4% in 2016. It is also estimated to be lower than the OECD average, which is estimated to be 6.8% in 2015 and 6.5% in 2016.

Estonia is set to run a current account surplus equaling 3.3% of GDP in 2015 and 2.3% of GDP in 2016. The government sector budget meanwhile is seen to have a surplus of 0.2% this year and 0.4% in 2016.