Tough times in Estonia’s last up to 5 years, experts say.

Sandra Taimre
sandra.taimre @ aripaev.ee

Economic experts say that the cooling economic growth should speed up a little next autumn but the tougher times in Estonia last up to five years.

According to the experts’ estimates, the unemployment is expected to grow in the near future but at the same time the prices should decrease. Estonian Ministry of Finance published a new forecast of the economic growth, which is more modest than the one drawn in the spring. The experts say that one of the results of more difficult times could be decline among working population in Estonia, ERR News writes. 

The picture in unemployment has been surprisingly good so far but at the same time, the unemployment reacts with certain delay, economic analyst Villu Zirnask explained.

Banker Indrek Neivelt doesn’t believe the unemployment would become huge. “I don’t think that the classic economic theories work in here as we have a large labor market next to us, Finland, or Sweden or some go to Ireland and England. It’s not likely that the unemployment would grow significantly but that means that people are leaving,” he said.

Zirnask noted that Estonia should get over the tough times, when everything goes downhill, next year. But reaching the 5-6 pct economic growth again takes more time.

Ain Hanschmidt, the member of the supervisory board of the ferry company Tallink, said that there is no reason to panic since Estonia has been in worse situation before and survived them fast.

The experts say that the salary increase will slow down because the companies are not able to pay the employees more money.