Rising external demand will help accelerate GDP growth in ----, boosted by an improving outlook for inward investment. While private consumption will remain an important driver of production, increasing inflation following the euro s depreciation in ---- will weigh on this component as a share of overall GDP. ...The euro s value has fallen in the wake of the US dollar s bull run, and a sustained programme of quantitative easing (QE) carried out by the European Central Bank (ECB). While we believe that the dollar s bull run is now coming to an end, the announcement made by the ECB in Q--- that it would be extending its QE programme to at least March ---- means that we do not expect the euro to make any sustained gains against the dollar over the next -- months. The euro s weakness will lower the costs of Estonia s exports to some of the country s non-eurozone trading partners, making them a more attractive option. ...Beyond our expectations for accelerating growth in ---- and ----, we believe the long-term outlook for the Estonian economy is largely positive. Growth will average -.- per annum in the years from ---- to ----, a notable improvement from the - Business Monitor International Ltd www.bmiresearch.com
...Estonia will experience robust economic growth over our long- term outlook, thanks to strong levels of inward investment and domestic savings. Estonia will enjoy robust growth over our long-term outlook, as trade begins to pick up after a difficult ----. ...We expect this component to decline from --.- of GDP in ---- to below --.- by ----. Fixed Investment: Fixed investment in Estonia has been steadily declining from --.- of GDP in ---- to just over -- in ----, and this is likely to fall further in ----. Private Consumption: In the pre-crisis period this component grew steadily as Estonian living standards rose. ...Fixed Investment: Fixed investment in Estonia has been steadily declining from --.- of GDP in ---- to just over -- in ----, and this is likely to fall further in ----.
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