Analytics, Economics, Employment, Estonia, GDP

Jürgen Ligi.

“2011 is a complicated year for the European economy, where growth prospects are under stress due to careful consumption and mood-depressing debt crisis of states,” Ligi said, as reported by Äripäev.ee/LETA. “States that have gotten their finances under control, do not have to service big loans, do not suffer from increase of interest rate and do not have to raise taxes, have a major advantage,” Ligi said, adding that Estonia is in the group of the happier states as our financial culture is shared by our export markets Finland, Sweden and Germany. And Estonia has in the past 1.5 years gained popularity among foreign investors and tourists.

“Estonia’s economic growth may reach around 4%, which would be a major easing, and unemployment rate will continue to fall, I believe faster than the official forecast. But structural problems in the ratio of skills and needs that were enforced during the boom do not allow it to fall even faster. Our biggest risk besides the EU debt crisis is elections. For the majority, budgetary discipline and euro are just labels that do not keep promises under control. It is very hard to imagine the spring coalition talks in this light,” said Ligi.