The European Commission forecasts Estonia's economic growth next year at 1.1%. Moreover, by the end of 2024, a decrease of 1% is expected, which informs ERR.EE .
The European Commission's forecast is more pessimistic than in the spring, when European commissioners predicted a decrease in Estonia's GDP by 0.5% this year, but growth by 3.1% next year. The reason is the reduction in consumption and the decline in exports.
Real GDP is expected to return to growth in 2025 due to a moderate recovery in consumption and investment, as well as stronger external demand, which will be facilitated by stronger economic growth from key trading partners.
In 2026, Estonian GDP should then grow by 2.6%. But inflation in The inflation rate is still high, and it is expected that it will remain at an average of 3.6% in 2024 and the same in 2025, since the Baltic country plans to increase taxes.