Source: International Monetary Fund
Summary
The Estonian economy is slowly re-emerging from a prolonged downturn but faces structural challenges. Wages growing faster than productivity and permanent increases in input costs, a legacy of previous shocks, are hindering price-sensitive activities, while production with higher technological content is constrained by lack of skilled labor and limited access to capital markets. Geopolitical developments, rising defense spending needs, and preexisting fiscal imbalances pose significant hurdles.
Subject: Defense spending, Expenditure, External debt, Fiscal policy, Fiscal stance, Income, Inflation, National accounts, Personal income tax, Prices, Public debt, Revenue administration, Taxes
Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Defense spending, Fiscal stance, Income, Inflation, Personal income tax