kaja.koovit @ aripaev.ee
Rising wages, boosted by labor shortages during the economic boom from joining the EU in 2004, and an outflow of workers to wealthier member states are threatening to undermine the competitiveness of companies who ship their goods abroad. With domestic demand shrinking, export strength is a key issue, the central bank and the International Monetary Fund said this week.
"This is clearly not sustainable,'' Sander Klaos, an economist with Nordea AB in Tallinn, told Bloomberg, adding he had expected wage growth of close to 15 percent in the quarter. "It will probably take a year for wage growth to slow to, or even below, sustainable levels.''