TALLINN, June 12 (Xinhua) -- The Estonian economy is forecast to grow by 3.3 percent this year and 2.1 percent in 2020, the Estonian central bank said Wednesday in a statement.
Economic growth will slow as export markets are weaker than before and there are still shortages of labor in Estonia, the Bank of Estonia said in the statement.
Wages will continue to rise despite slower economic growth, but they will do so at a lower rate. Rising wages and low unemployment mean that intake of tax revenues for the state will be good, it noted.
The number in employment will remain at the same level and wage growth will slow from 8.1 percent this year to 5.2 percent by 2021. The unemployment rate is set at 4.6 percent this year, against the 5.4 percent in 2018, said the statement.
Inflation will fall in Estonia from 3.4 percent in 2018 to 2.1 percent in 2021, as it will mainly be driven by rising labor costs, while the fall in energy prices and the reduced impact of alcohol excise will apply the brakes, said the statement.