The European Commission predicts that Estonia’s economic growth next year will be 1.1%. In addition, a decrease of 1% is expected by the end of 2024, according to ERR.EE.
The European Commission’s forecast is more pessimistic than in the spring, when European commissioners predicted a drop in Estonia’s GDP of 0.5% this year, but growth of 3.1% next year. The reason is a reduction in consumption and a decrease in exports.
Real GDP is expected to return to growth in 2025, supported by a modest recovery in consumption and investment, as well as stronger external demand, supported by stronger economic growth from key trading partners.
In 2026, Estonia’s GDP should grow by 2.6%. But inflation in Estonia remains high and is expected to remain at an average of 3.6% in 2024 and the same in 2025, as the Baltic country plans to increase taxes.
