This study focuses on the most important drivers of the swift current account rebalancing which is taking place in Estonia and considers the possible way forward. After very large deficits in the boom years (2005-2007), Estonia's current account balance turned positive in the downturn, as...

Analysis of the real estate sector in Estonia in recent years: multifactor housing demand and housing supply constraints. Was the price right and is it now? What next?

Estonia's accession to the EU in 2005 led to a period of above-potential growth, fostered by expansionary monetary conditions. The predominance of foreign-owned banks accelerated the process of financial integration. Financial flows, while massive, were mostly directed at the non-tradable...

On 1 January 1999, the euro became the single currency of eleven EU Member States, thereby replacing the different national currencies at the respective irrevocably fixed conversion rates. The Member States concerned ceded their monetary policy powers to the European System of Central Banks...

On 1 January 1999, the euro became the single currency of eleven EU Member States, thereby replacing the different national currencies at the respective irrevocably fixed conversion rates. The Member States concerned ceded their monetary policy powers to the European System of Central Banks...

Every year several thousand Estonians, most of them young and low- or medium-skilled, leave Estonia to find better paid work abroad. Given Estonia's low birth rate, the loss of 0.2-0.3% of its working-age population each year exacerbates the challenges posed by the ageing of its population....

Energy and carbon intensities in the Baltics are among the highest in the EU, in particular in transport, where the passenger car fleet is one of the most energy-intensive. Apart from low fuel taxes, another explanatory factor is that Estonia and Lithuania do not apply any car tax while the...

Financial market liberalisation and financial convergence after EU accession, extremely low real interest rates as well as fast rising disposable income and wage expectations contributed to rapid lending growth in Estonia from 2000 to 2007. Favourable fiscal provisions further contributed to the...