WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

The past year presented significant challenges for the Estonian economy. A constellation of factors, including the disproportionately severe impact of the war in Ukraine, weak domestic and international demand, disruption to supply chains and a shift away from traditional export markets, dealt the economy a heavy blow. However, 2024 will mark a turning point, with stabilising prices, a modest resurgence in external demand and a robust labour market all indicating that the worst may be over. Nevertheless, to enter a new cycle of economic growth, the competitiveness of Estonian firms needs to be revived and new export markets need to be established.