Slow Recovery View On Track

We hold to our core view for Estonia to experience a lacklustre recovery in 2010, with lingering effects from the 2009 financial crisis dragging on domestic demand. While we hold to our growth forecast of 1.7% for this year, we caution that downside risks are rising, especially as import values are likely to rise on the back of euro depreciation through H110. Over the medium term, we expect the recovery process to continue, and for growth to accelerate to 2.2% in 2011 and then to average above 3.0% over the long run.

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