Cover IMF Staff Country Reports
Republic of Estonia: 2007 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Estonia
Author:
International Monetary Fund
Search for other papers by International Monetary Fund in
Current site
Google Scholar
PubMedClose
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2007: Issue 255
Language:
English
Publication Date:
30 Jul 2007
DOI:
https://doi.org/10.5089/9781451812527.002
ISBN:
9781451812527
ISSN:
1934-7685
Pages:
49
Keywords:
ISCR; CR; Estonia; criterion; lending; CPI basket; inflation criterion; EU labor market; budget surplus; government debt; labor productivity growth; Inflation; Income; Current account deficits; Baltics
Download PDF (4.9 MB) Download Epub
The Republic of Estonia’s 2007 Article IV Consultation reports that surging domestic demand has widened the external current account deficit and pushed the economy against capacity constraints. Wage increases have begun to erode competitiveness and kept inflation above the Maastricht threshold for euro adoption. There are signs of an incipient slowdown, but a resurgence of demand and an eventual hard landing, with growth stagnating, cannot be ruled out. A strong fiscal stance is needed to subdue wage and income expectations and improve the odds of a soft landing.
  • Collapse
  • Expand
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund
Volume 2007: Issue 255