Republic of Estonia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Estonia

Republic of Estonia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Estonia
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Volume/Issue: Volume 2024 Issue 177
Publication date: June 2024
ISBN: 9798400278303
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Labor , Exports and Imports , Economics- Macroeconomics , staff appraisal , IMF staff representative , supplementary budget , TA project , Policy recommendation , Exports , Fiscal stance , Productivity , Output gap , Baltics

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Summary

Russia’s war on Ukraine triggered supply side disruptions, shifting up price and cost levels compared to the euro area average and hurting competitiveness. These developments added to longer-standing problems. Estonia’s export market share has stalled since soon after the GFC as productivity growth fell and the country’s previous competitive edge slowly eroded.