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. Last Updated: 07/27/2016

Estonia's Economy Mending




TALLINN, Estonia -- Estonian Finance Minister Siim Kallas said Estonia had shaken off the damaging effect of Russia's 1998 financial crisis and gross domestic product growth should accelerate from 4.1 percent this year to 6 percent in 2004.


Kallas was speaking at a news conference after his ministry had submitted economic and budget plans for the period from 2000 to 2004, which showed rising growth after a 1.4 percent contraction in the economy last year.


Up to now, the government prepared only a detailed state budget strategy on an annual basis, Kallas said.


The plan, now in the hands of the Cabinet, also forecasts a narrowing of the current account deficit from 6.6 percent of GDP this year to 4.4 percent by 2004 and sees consumer price inflation falling from 4.5 percent this year to 4.1 percent in 2001 and 3.0 percent in 2004.


Estonia's 1999 state budget deficit came to 2.126 billion kroons ($124 million), or 2.8 percent of estimated GDP. The entire government sector deficit in 1999 was equivalent to 4.7 percent of GDP.


The plan shows real growth in investment of 8 percent this year, and growth of between 6.8 and 8.6 percent in the next four years.