The outlook for the Estonian economy depends, above all, on the future rate of inflation. Estonia currently has the highest rates of inflation in the Euro zone, and so the rises in production costs and cost of living are putting noticably more pressure on the resilience of the national economy according to a Bank of Estonia (Eesti Pank) press release.
The deficit on the current account of the Estonian balance of payments stood at €23 million in the second quarter of 2022 (Q2 2022), or 0.3 percent of GDP, €650 million less than in Q1 2021, the Bank of Estonia says.
The euro zone economy remained in reasonably good shape in the second quarter of 2022 (Q2 2022), before economic sanctions and the effects of Russia's invasion of Ukraine had made themselves fully known, the Bank of Estonia reports.
Estonia's continued high inflation, driven by high energy prices arising from the Ukraine conflict and the highest rate in the European Union, will continue through to spring, experts say.