Estonian economy could plunge 9% in 2009

Country:  Estonia

18 February 2009

The Baltic state of Estonia could see its economy nosedive by up to 9% in 2009, but a potential recovery could be on the cards in 2010, according to the economic forecast published by the Estonian central bank, Estonian publication Postimees.ee reports.

The economic downturn has had a devastating impact on property values in Estonia. Property prices have recorded double-digit price falls, since the boom years of 2004 to 2006, which saw average property price in the capital city of Tallinn appreciate by 40%, according Knight Frank.

“Estonia’s economic downturn may reach 5.5% this year for sharply decreased foreign demand. One may expect both the economic growth and foreign demand to restore in 2010. If the economies of Estonian foreign trade partners will decrease averagely by 3% this year, Estonia’s economy may fall 9%,” Estonian central bank announced.

See Also:   Estonia