Estonian experts predict 8% economic recession in 2009

Presuming that the capacity of the global economy will remain on the level of the last quarter of 2008, the recession in Estonia could exceed 8% in 2009 and the decrease would continue until 2010, concluded Tartu University professors Raul Eamets and Urmas Varblane, Tallinn University of Technology retired professor Jaak Leimann and Estonian central bank's vice president Märten Ross, as LETA reported, referring to Postimees.

The experts have advised the government upon drawing up the negative supplementary budget.

According to the four experts, the outlook for Estonian economy for the year 2009 has thus inevitably worsened, and further development is as uncertain as in the rest of the world.

As the world economy has worsened in the past six months, the economic growth and inflation have turned out smaller than predicted in 2008 by the Ministry of Finance and the Estonian central bank.

The extent of overlooking the projections depends greatly on outer factors. The European Commissions last forecast anticipates a 4.7% decrease in 2009 for Estonia, and a small increase in 2010.

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