Let’s look at the economic and employment updates from Estonia. An exploration of the current state of affairs in Estonia will help you make plans to work overseas in Estonia and settle there.
Due to the COVID-19 crisis, Estonia’s GDP dropped by 5.2% in 2020. This was a result of the decrease in investment and private consumption. Foreseeing the normalization of the global situation, the IMF expects a growth of 4.5% in 2021 for Estonia. In 2022 the forecast is set at 3.7%.
Estonia’s IT sector has performed exceptionally in its IT industry. The cou8ntry also has delivered a distinguished performance in the green energy sector. The country is one of the largest producers of shale oil in the world.
The general government deficit of the country in 2020 was estimated at 5.5%. A fiscal stimulus of 3% of GDP was given by the government to mitigate the COVID-19 pandemic’s impact. The fiscal deficit for 2021 is expected to be –4.5% and –3.7% for 2022.
Estonian budget foresees more expenses in pensions, defense, healthcare, and an extension of healthcare costs related to COVID-19.
In 2020, the unemployment rate was 7.8%. This is expected to ease gradually to reach 6.1% in 2021. The forecast for 2022 for the same is 5%.
The agricultural sector of Estonia employs around 3% of the country’s workforce. This sector contributes 2.5% of the country’s GDP.
The industrial sector employs 29% of the country’s workforce. This sector represents around 22% of the country’s GDP. The main industries are food, IT & electronics, wood processing, and chemicals. Due to the COVID-19, the industrial output dipped by 5% in 2020 in comparison with 2019.
The services sector, the most developed sector, employs around 68% of Estonia’s active people. This sector accounts for about 62.5% of the country’s GDP. The turnover of enterprises in the retail trade increased by 4% in 2020. In the same year, the tourism sector suffered a 47% decrease in tourist arrivals. This was in the period from January 2020 to November 2020.
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