Republic of Estonia: Staff Report for the 2005 Article IV Consultation

Author: International Monetary Fund

Volume/Issue: Volume 2005 Issue 394

Publication date: November 2005

ISBN: 9781451812497

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Topics covered in this book

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Exports and Imports , Inflation , Money and Monetary Policy , Public Finance , ISCR , CR , headline inflation , product market flexibility , criterion , Maastricht criterion , current account deficit , headline inflation inflation rate , IMF staff estimate , authorities consent , Current account deficits , Inflation , Current account , Baltics

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Summary

The staff report for the 2005 Article IV Consultation on the Republic of Estonia focuses on the economic outlook and risks. Robust economic growth continues, largely driven by domestic demand. Estonia has achieved significant nominal convergence; meeting all of the Maastricht criteria, save for inflation. Estonia’s banking system remains financially sound, with strong profitability continuing despite increased competition. It is important for Estonia to maintain the high degree of market flexibility that has been achieved.