Analytics, Economics, Estonia, Export, Financial Services

According to the forecast, deflation endangers the euro zone economic growth more and more that can cause Estonian export volumes to fall and loan burden to become more expensive.

While Estonia is forecast to have 2.5% economic growth, the euro zone average is 1%.

"The ongoing crisis in Ukraine makes it complicated to forecast the economic development of the near future but conclusions can be drawn based on some fundamental indicators," said Ernst & Young Baltic AS partner Ivar Kiigemägi.

"For Estonia, analysts are more optimistic than average – for this year, the study forecasts Estonia's economic growth at 2.5% and for 2015, 3.2%. The growth should mainly come from exports and consumption caused by increased incomes and the state has a possibility to balance the more negative developments somewhat," added Kiigemägi.