The country’s pace of reform has been outstanding, i.e. during the last 15 years Estonia managed to create sound macroeconomic achievements mainly through efficient structural policies. As a result, during the last decade per capita GDP has risen from 35 % of the EU average to about 60 %.

In 2005 the country for the first time in the last five years reached more than 10 % growth on the year-on-year rate indications; it was the second best year in Estonia’s post-Soviet economic history. And strong growth is expected to continue, but somewhat shifting to a slower gear.

Development prospects according to SEB’s experts seem quite optimistic:

• Strong impetus from unprecedently low interest rates will continue.
• Exports will continue to grow and stay at the level of 20 % GDP.
• Construction sector will experience stable increase at the level of 8-10 %.
• Energy market will face an upturn in consumer prices (together with transport and housing costs they represent 30 % consumers’ monthly expenses).
• There are some uncertainties concerning the level of gas prices.

The Baltic Course