Äike
08-25-2010, 02:35 PM
Finance Ministry Brightens GDP Forecast (http://news.err.ee/economy/eb3e91ab-2661-4e2b-a79a-2c4762d1b853)
GDP will grow 2 percent during 2010, says a report released by the Ministry of Finance.
The ministry's April forecast predicted a 1 percent growth. At the beginning of this year, the ministry predicted a 0.1 percent decline.
For next year, the report has predicted a growth of 3.6 percent, or 0.4 percent less than previously forecasted. For 2012, the ministry expects 4 percent growth.
The report says that this year's GDP will be influenced mostly by external demand, whereas domestic demand should begin increasing next year.
Unemployment and consumer expense forecasts were more pessimistic. The ministry expects unemployment for 2010 to be 17.5 percent, 2 percent higher than previously speculated. The consumer price index is predicted to grow 2.6 percent, 1.5 percent higher than in April.
Thanks to recovering tax revenue and sales from emission quotas, this year's budget deficit should improve to 1.3 percent of GDP. Last year's deficit was 1.7 percent.
The ministry predicts that the budget deficit will be 1.6 percent for 2011 and 2.3 percent for 2012. Minister of Finance Jürgen Ligi said that the country hopes to reach a budget surplus by 2013. The current forecast does not anticipate a surplus until 2014.
GDP will grow 2 percent during 2010, says a report released by the Ministry of Finance.
The ministry's April forecast predicted a 1 percent growth. At the beginning of this year, the ministry predicted a 0.1 percent decline.
For next year, the report has predicted a growth of 3.6 percent, or 0.4 percent less than previously forecasted. For 2012, the ministry expects 4 percent growth.
The report says that this year's GDP will be influenced mostly by external demand, whereas domestic demand should begin increasing next year.
Unemployment and consumer expense forecasts were more pessimistic. The ministry expects unemployment for 2010 to be 17.5 percent, 2 percent higher than previously speculated. The consumer price index is predicted to grow 2.6 percent, 1.5 percent higher than in April.
Thanks to recovering tax revenue and sales from emission quotas, this year's budget deficit should improve to 1.3 percent of GDP. Last year's deficit was 1.7 percent.
The ministry predicts that the budget deficit will be 1.6 percent for 2011 and 2.3 percent for 2012. Minister of Finance Jürgen Ligi said that the country hopes to reach a budget surplus by 2013. The current forecast does not anticipate a surplus until 2014.