wiiw Forecast Reports

ESTONIA: A momentary dip, rather than recession


Maryna Tverdostup

in: Sailing Through Rough Waters
wiiw Forecast Report No. Spring 2023, April 2023 , pp. 60-63

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The anticipated economic decline – driven by severe inflation and weakening foreign demand – did indeed materialise in Q4 2022. However, economic prospects are not that grim, as inflation is slowing and consumption is gradually recovering. Moreover, economic activity in those sectors that are less reliant on imports of raw materials remains strong. Yet two major risk factors overshadow the outlook – the reduced export competitiveness of Estonian firms and a deepening systemic imbalance between budget revenue and expenditure.


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Estonia