Analytics, Estonia, Financial Services, GDP, Investments, Rating, Retail

According to Fitch, the Estonian government sector is to experience surplus in 2016 as well as 2017. Economic growth is to accelerate and is to become more balanced as a result of investments increasing and the economic growth of Estonian trade partners recovering.

For the rating to increase, Estonia's economic growth should continue to increase and negative foreign factors should be absent. Estonia is receptive to foreign factors, for instance the bad economic state of trade partners, which can jeopardize Estonian economic and financial stability as well as the rating.

Fitch on Friday affirmed Estonia's long-term foreign and local currency issuer default ratings (IDR) at A+, with the outlook as stable. Estonia's ratings are supported by a strong sovereign balance sheet, strong credit fundamentals including governance indicators and a high level of economic development compared with rated peers, and a sound macroeconomic policy framework. Fitch expects the Estonian economy to grow 1.5% this year and forecasts that growth will pick up over the next two years to 2.8% in 2016 and 3.4% in 2017.