Baltic Business Monitor
January 7, 2006
For 2006, Estonian Institute of Economic Research predicts Estonian economy to grow 8 percent; unemployment will continue to lower. Inflation is expected to remain above 3 percent, possibly hindering changeover to the euro. Growth of trade will continue and balance of foreign trade will improve. Last year’s economic leap was mostly caused by joining the EU, trade with the EU increased 30 percent and even 70 percent with Russia. Ministry of Economy and Communications comments that since local qualified labour is more actively seeking better earnings in other member states, increase of wages in local market is inevitable and vocational education system needs improving.