wiiw Forecast Reports

ESTONIA: Government uses fiscal space to support a bounce-back


Sebastian Leitner

in: No Quick Recovery in Sight, with Coronavirus Risks Looming Large
wiiw Forecast Report No. Autumn 2020, November 2020 , pp. 60-63

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The economic slump of March-May 2020 was short-lived and was followed by an upswing in external and household demand. Nevertheless, the second wave of infections is likely to result in restrained economic activity in the coming months. A substantial government rescue package helped to cushion the downturn, and the medium-term budget strategy envisages further substantial public support for economic growth. We project a recession of 4.8% of GDP in 2020, followed by a revival of 3.9% in 2021 and a smaller upswing of 3% in 2022.


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

Countries covered: Estonia