TALLINN - Estonia’s central bank Eesti Pank forecasts in its fresh report that the country will see 2 percent economic growth this year, which is more pessimistic than its December forecast, reports Public Broadcasting.
The central bank noted that the main reason for the fall in the growth rate is the slowdown in domestic demand, especially fixed capital investments. Eesti Pank said that the slowdown is caused mainly by temporary factors.
Next year and the year after that, the economic growth should accelerate, to a bit over 4 percent in both years, with support from domestic and foreign demand.
Eesti Pank forecasts that inflation will fall to 3 percent this year and in the coming years the price increase will slow further. In 2014, the consumer price index growth should be 2.5 percent and in 2015, 2.7 percent.