Estonia Annual Inflation Increases In September

Oct 5, 2007 - Estonia's consumer prices rose at a faster pace of 7.2% year-on-year in September compared to the 5.7% increase in August, the Statistics Estonia said Friday. On a monthly basis, the consumer price index climbed 1.1% in September, larger than the 0.1% growth in August.

The annual growth was fueled mainly by rise in housing prices and higher prices in hotels, café and restaurants. The monthly increase was driven by rise in the prices of dairy products; motor fuel and recreational services and the seasonal increase clothing prices.

Almost all the commodity groups experienced price increase, except charges of communications, which declined 0.5% year-on-year in September.

Estonia Trade Deficit Narrows In July

Sep 25, 2007 - The Estonian trade deficit narrowed to 3.4 billion kroons in July from the deficit of 3.8 billion kroons in June, the Statistics Estonia said Tuesday. The trade deficit was at 4.7 billion kroons in the same period last year.

The Statistics office said that the Estonian foreign trade turnover climbed 4.0% to 23.4 billion kroons in July from the previous year. But, on a monthly basis, the foreign trade turnover dropped 8.0% in July. Exports of goods rose 12.3% to 9.988 billion kroons in July from last year. In contrast, imports of goods dipped fell 1.2% to 13.445 billion kroons. On a monthly basis, exports slipped 7.3% in July, while imports declined 7.9%.

Estonia GDP slows to 7.6 percent in Q2

Sep 10, 2007 - Estonian economic growth slowed to 7.6 pct in the second quarter of 2007 on an annual comparison, the national statistics office said today, issuing revised figures.

In the first quarter of 2007, gross domestic product expanded by 9.8 percent on a 12-month comparison.

The office attributed the slowdown in the second quarter to weaker domestic demand and a considerable deceleration in exports.

Estonian CPI Growth Slows In August

Sep 7, 2007 - Consumer prices in Estonia increased 5.7% on an annual basis in August, the Statistics Estonia said, Friday. Consumer Price Index, CPI, rose faster 6.4% in the previous month. The CPI edged up 0.1% on a monthly basis in August, while the CPI gained 1.1% in the earlier month.

In August, prices of goods grew 2.9% annually, slowing from the 4.3% rise in the previous month. Food alcohol and tobacco prices expanded 5.7%, following the 6.7% climb in the earlier month. Manufactured goods prices gained 0.6%, while prices rose faster 2.2% in the last month. Services prices jumped 11.1% in August, hard on the heels of a 10.5% surge in July. The consumer price index in August was influenced chiefly by growing housing costs, rising food prices and falling motor fuel prices, the Statistics Estonia said.

Prices of food and non-alcoholic beverages expanded at an annual rate of 6.3% in August, decelerating from the 7.7% annual jump in the previous month. Clothing and footwear prices advanced 5.1% in August, a little higher than the advance of 4.4% in the last month. Housing prices soared 16.6%, matching the rise in housing prices of the previous month. Transport prices eased 1% annually in August, compared to the increase of 1.6% in the earlier month. Communications prices slipped 0.4%, following the 0.5% drop in prices in the last month.

On a monthly basis, prices of food and non-alcoholic beverages slipped 0.8% in August, versus the 1.3% advance in food and non-alcoholic beverages prices in the previous month. Clothing and footwear prices grew 1.2% recovering from a 0.8% fall in clothing and footwear prices in the last month. Housing prices gained 1.9% following the robust 4.5% expansion in housing prices in July. In August, vegetable prices sank on account of seasonal factors, while prices of motor fuel and heating energy and public transport eased, the Statistics Estonia observed.

Estonia Cuts 2007 GDP Growth Forecast To 8.1%

Aug 23, 2007 - Estonian authorities lowered their economic growth forecast for 2007 and 2008 and said inflation would accelerate, but the finance ministry said there was no need to worry.

Estonia's gross domestic product (GDP) is this year expected to increase by 8.1 pct compared with 2006, the country's finance ministry said, cutting back its earlier forecast of 9.2 pct.

And in 2008 the economy is expected to grow by 7.0 pct on the same basis, rather than the previously forecast 8.3 pct.

'There is no need to worry about Estonia's economy,' said Finance Minister Ivari Padar. 'Despite growth being less than predicted, the budget will be growing, and despite the decline of growth we still predict that we will get more money in the budget next year than we predicted this spring.'

Estonia's GDP grew by 11.4 pct in 2006, lagging just half a percentage point behind neighbouring Latvia, which topped the EU growth table last year.

But the ministry also said that inflation is set to be higher than expected.

Average annual inflation is likely to hit 6.1 pct this year, due to strong domestic demand and rising wages, outpacing the ministry's original forecast of 4.9 pct.

It is then expected to reach 7.4 pct in 2008, rather than the initially predicted 5.2 pct, but is likely to lose pace from 2009 and drop to 3.5 pct by 2011.

'The increase of prices is rapid but the increase of incomes continues also,' Padar said. 'We see it as a rather normal development that in a country with such a fast-growing economy, prices and salaries move closer to the EU average.'

But curbing inflation is a key plank of EU-set criteria for would-be eurozone members. Estonia's failure to keep its average annual rate under control put paid to the goal of adopting the European single currency at the start of this year.

Although no new date has been set for making the switch from the national currency to the euro, Estonian officials have suggested it may be possible by 2011.