Estonians are increasingly confident about their income and do not fear themselves so vulnerable as before, shows a new survey by Swedbank.
The survey showed that growth in private consumption has played a major part in the economic recovery.
Analyst Annika Paabut said that consumer confidence has been growing and private consumption is growing.
„Consumers feel that their income level is not so vulnerable any more and dare to make also bigger purchases, including durable goods,“ said Paabut.
According to bank, private consumption is likely to grow a little less than 5% this year, boosted mainly by wage expectations and increased employment.
The analyst said that what has been surprising is rapid growth in semi-durable goods since income level has not increased correspondingly.
Swedbank expects inflation to reach 4.8% this year and slow down to between 2 and 3% in the coming years.
According to Paabut, inflation is growing mainly because of price of energy and food, but also the rounding effect in euro transition plays a part.
Toomas Hõbemägi
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