Analytics, Economics, Estonia

According to the prognosis, the price growth will decelerate to 0.4%.

"The times are currently undoubtedly difficult for Estonia. At the same time, the economic decline will provide us with a realistic opportunity to make our economy more efficient and stable," said the minister of finance Ivari Padar.

"In the light of the new outlook, the options for acceding to the euro area and in longer-term perspective the budgetary policy certainly need to be reviewed," said the minister.

On Tuesday the minister of finance will introduce the new economic outlook to the Government cabinet. The prognosis will be a basis for the country's four-year budget strategy.

In autumn, the ministry expected this year's economic decline to reach 5.3% while the negative supplementary budget took into account a decline of 8%. According to the risk scenario compiled by the Bank of Estonia, Estonia's GDP will fall by 8.9% this year.