Analytics, Economics, Employment, Estonia, Financial Services

Acceleration of economic growth is supported by private consumption growth, which is caused by strong wage growth and declining unemployment. Export growth is held back by the weak economic growth of some of Estonia's main trading partners – especially Finland and Russia. Also, the OECD estimates that due to the rapid wage growth, Estonia's competitiveness has decreased, the Ministry of Finance reports.

Consumer price inflation in the OECD forecast is to stay low this year and the next two years because the price increase is kept back by the global raw material prices.

OECD forecasts Estonia an unemployment rate of 7.4% this year, 7% next year and 6.6% in 2016.

Estonia's current account will have this year a 0.1% of gross domestic product (GDP) surplus, next year it is expected that the current account is in balance and in 2016, there will be a deficit of 0.2%.