Analytics, Economics, Estonia, GDP, Markets and Companies

The Estonian economy this year has been favored by large investments, supported by which the economic growth has accelerated. A slightly slower economic growth with 3.3% can be expected next year. But at that, economic growth next year will be more balanced than this year's, it appears from the fresh Nordic Outlook.

In addition to strong external demand, which favors exporting companies, the consumption of households is to also increase in 2018. The reason for that is the income tax reform, as a result of which many people will be left with more money.

Next year, main fixed assets investment will be contributed to by active construction activity, the financing of which will be helped by European Union Structural Funds. The low loan demand of companies indicates their continued cautiousness.

SEB said that the growth of the harmonized index of consumer prices (HICP) is to amount to 3.6% this year and 3% in 2018.

In its spring Nordic Outlook published in May, SEB left the 2017 economic growth forecast on Estonia unchanged at 2.2% and the forecast for 2018 unchanged at 3.1%.