The Estonian Ministry of Finance expects zero growth of the country’s economy at the end of the current year.
According to the forecast published by the Ministry, the reduction in external demand in the second half of last year was stronger than expected, and the expected turn to economic recovery did not take place. This will have the consequence of the lack of growth in the current year.
The Ministry of Economy notes that last year, the exchange of goods contracted globally, driven by the cooling of the Chinese economy and geopolitical tensions. In developed countries and Europe, this was compounded by the rapid rise in interest rates, which was launched to curb inflation, and the deterioration in capital- and energy-intensive activities due to the energy crisis.
Nevertheless, according to the Ministry’s assessment, the factors restraining the development of the Estonian economy have been receding in recent years: price growth has slowed down, wage growth has continued, interest rates have gradually decreased, and there is no high unemployment.
The Estonian Ministry of Finance prepares a financial and economic forecast twice a year, in spring and summer.
Estonia’s GDP in 2023 has decreased by 3.1%. At the end of March 2024, the Bank of Estonia gave a forecast that the country’s GDP decline would slow down to “minus” 0.6% this year and the economy would grow by 3.2% in 2025.
Earlier Experts Club think tank and Maxim Urakin released a video analysis of how the GDP of the world’s largest economies has changed over the past decades, more video analysis is available here –
https://youtu.be/w5fF_GYyrIc?si=BsZmIUERHSBJrO_3
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ECONOMIC GROWTH, ESTONIA, EXPERTS CLUB, GDP, MACROECONOMICS, MINISTRY OF FINANCE, URAKIN
Estonia has become the first European country to create a legal scheme to use frozen Russian assets to help Ukraine, in the coming weeks it should receive the government approval, the Postimees newspaper reported on Tuesday.
“The decision is almost ready, it was discussed at the Cabinet, but some details still need to be clarified. We can also demonstrate to other countries how the solution can work legally,” Prime Minister Kaja Kallas said.
The scheme created in Estonia provides that Ukraine documents the damage that Russia inflicts on it, and then the Russian property in Estonia is transferred to Ukraine. After that, Russia can settle accounts with Ukraine. If it does not do this, then it will show that all the damage was caused by itself.
According to Foreign Ministry Vice-Chancellor Erki Kodar, Estonia has prepared amendments to the law on international sanctions that will ensure the financial responsibility of the aggressor state for damage caused by the most serious violations of international law.
He added that the damages would be compensated by persons who have a proven connection with the formation of Russian policy or contribute to its implementation. “Therefore, compensation for losses will continue to occur only at the expense of the assets of certain individuals, that is, in parts,” he said.
According to the Financial Intelligence Unit, at the beginning of June, EUR 34.8 million were frozen in Estonia, including more than EUR 8.7 million in the advance payment accounts of the Tax and Customs Board. They do not include other tangible assets such as the value of companies and fixed assets, receivables or lost profits.
The Republic of Estonia has handed over to the Ukrainian Armed Forces all of its 155 mm howitzers, the General Staff of the Armed Forces of Ukraine said on Monday.
According to the General Staff, dozens of 155 mm FH-70 and 122 mm D-30 howitzers, thousands of 155 mm artillery shells, hundreds of M2 Karl-Gustaf anti-tank grenade launchers with ammunition, support equipment for artillery units were also transferred to Ukraine.
In addition, Estonia will continue to provide both basic and specialized training to the Ukrainian Armed Forces.
The Estonian volunteer rescue association Paasteliit on Thursday handed over 10 mobile houses Containex as humanitarian aid to the State Emergency Service of Ukraine.
According to the press service of the Main Directorate of the State Emergency Service of Ukraine in Lviv region, these containers are adapted for living, each of them has a living and shower room, as well as a toilet. Heat is generated by air-type heat pumps.
“We are grateful to our colleagues for this valuable gift, as a long winter awaits us ahead, and, unfortunately, there are more than 7 million internally displaced persons in Ukraine and millions more living in territories where the enemy can destroy their homes at any moment. Thus, Ukrainian rescuers will be able to provide temporary warmth and shelter in the most critical areas,” the message says.
Estonia simplifies the procedure for obtaining a residence permit for refugees from Ukraine, from March 9, they can apply for a residence permit in one day. The corresponding order was adopted on Tuesday by the government of the republic.
“Today’s government decision will help reduce the bureaucracy for traumatized military refugees from Ukraine. This will allow them to more easily and quickly adapt to life in Estonia,” Prime Minister Kaja Kallas said.
According to the order, a refugee from Ukraine can apply for temporary protection in the form of a residence permit for a year, and then extend this period, the government explained.
Persons under temporary protection, as well as those close to them, are provided with services such as accommodation and meals, health insurance, they are granted the right to work in Estonia, and children are provided with access to pre-school and basic education.
Refugees are entitled to a living allowance, other cash benefits, such as family benefits. All those in need of assistance are entitled to emergency social assistance, they can participate in language learning and adaptation programs free of charge.
Since February 27, more than 7,000 Ukrainians have arrived in Estonia, including 2,610 children. Until now, most of the refugees came to Estonia to stay with their relatives or friends. Earlier it was reported that Estonia is ready to accept up to 10,000 refugees.
Estonia, Latvia and Lithuania have opened borders for Ukrainians for all types of travel, according to the recommendation of the European Council, Ukrainian Foreign Minister Dmytro Kuleba has said.
“Estonia, Latvia, Lithuania have opened for all types of travel for Ukrainians, according to the recommendation of the EU Council. Visa-free weekend in the Baltic countries? Now it is possible again,” Kuleba said on his Twitter.
