Estonia, Financial Services, Markets and Companies

In its analysis, the Bank of Estonia noted that households also decreased spending on convenience goods and food. Expenses on the latter article fell by 14.1% in the fourth quarter of 2009 in the year-on-year comparison. This indicates that some households, the family budget has become very difficult.

In the year 2010, the private consumption level is expected to remain close to that of the year 2004 and will continue having a negative contribution on the economic growth.

At the same time, the central bank sees that creation of new jobs and the improvement of the overall situation in the economy will in coming years increase families’ incomes and supporting the recovery in private consumption.

The completion of restructuring in enterprises will in near future help improve the confidence of those who have maintained their jobs and this will make it possible for them to start applying for more loans yet again.