Macroeconomic Forecast Estonia

Estonia's trade deficit totalled EUR1.2bn over the first seven months of the year, down from the EUR1.6bn recorded during January-July 2007. On the back of the developments in the trade account, the current account deficit too, showed a marked decline, falling to EUR1.2bn from EUR1.6bn over the same period. The key factor has been imports, which fell 2.1% y-o-y in January-July, to total EUR6.1bn, mainly on the back of a slowdown in domestic demand. This latest data reinforces our view that the Estonian current account deficit will fall markedly this year to 12.4% of GDP from 17.7% in 2007.

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