|
BNS - The European Bank for Reconstruction and Development (EBRD) said in its transition economies' overview that the flexibility of the Estonian economy in the economic crisis had been impressive so far.
Flexibility of the economy is the main precondition to the preservation of competitiveness and the currency board, EBRD said.
In the short term, EBRD finds that Estonia's challenges are coping with the growing unemployment and bad loans.
Estonia must develop export of products with a higher value added, take the situation of the public sector finances under its control and focus on the restoration of the investors' trust and try to attract foreign investments into the country, EBRD said.
In the opinion of EBRD one of the biggest challenges for Estonia is ensuring sustainable solutions in the energy sector.
Contraction of the imbalances of the economy are once again creating a situation where transition to the euro could be possible. In order to achieve it it is necessary to focus on sustainability of the economy.
EBRD assesses the fall of the Estonian economy this year at 13.2 percent.
|
