Estonia to have fastest-growing EU economy

The Organization for Economic Cooperation and Development (OECD) has predicted that Estonia will have the European Union's fastest-growing economy in 2013.

Estonia looks set to avoid the debt contagion and lack of consumer confidence currently characterising the eurozone market, with a growth rate of 2.2 per cent forecast for 2012.

This is then set to grow to 3.6 per cent in 2013 despite the unfavourable macroeconomic outlook, reports ERR news.

"The OECD's positive assessments and forecast spell relief on the background of general insecurity," said finance minister Jurgen Ligi. He added that, while the external economic environment is a risk, Estonia's close links with the Baltic countries will hopefully help shore up its growing levels of prosperity. Efforts to reduce unemployment and the increasing importance of private investment make Estonia one of the OECD's most stable members, the organisation concluded.

The Estonian government recently promised not to lower subsidies to renewable-energy producers retroactively, a move which could spook green investors.