The rating is supported by strong management and state institutions, together with membership of the Euro Union and the euro area, as well as a consistently low debt burden and net creditor position, the Ministry of Finance reports. The Fitch agency notes that the Estonian economy has been declining for several consecutive quarters and that the decline will continue this year. The reason for this is attributed by the agency to the reduction in consumption and investments, the decline in trade due to sanctions against Russia and Belarus, the weakness of the construction and real estate sector in the Nordic countries and the premature channeling of funds from the second pillar in consumption.
Fitch expects the economy to return to growth in 2025. The economy will gradually improve in the second half of this year, reaching growth of 3.1% next year, where private consumption growth is expected to be supported by real wage growth and improved confidence.
2024-01-27 08:33:39
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