Analytics, Economics, Estonia, Interview

Andres Arrak.

Speaking of the positive aspects of the current crisis, Arrak noted that now everybody have understood the importance of the economy: "Before, when times were good, no-one was interested where the money was coming from or why business is so important."

Although consumption has a positive influence on economic growth, it is domestic consumption in particular that is going to revive the economy, the expert pointed out.

"During the doom, it is always domestic consumption that enlivens economy. Purchasing of flat-screen TVs, expensive cars and other items, not manufactured in Estonia, was taking money away of the country," the economist explained.

Arrak says that unemployment is likely to keep growing until summer 2010, but then should ease as companies create more temporary jobs.