March 30, 2020 / 2:08 PM / 2 months ago

UPDATE 1-Estonia slashes growth forecast, sees 3% fall in GDP this year

* Jobless rate to jump to 9%

* CenBank said last week 2020 GDP will fall over 6% (Adds details, quote)

TALLINN, March 30 (Reuters) - Estonia’s finance ministry said on Monday it expects the economy to contract by 3% this year instead of expanding by 2.2% as it forecast in September, citing the impact of measures to combat the spread of coronavirus.

It sees unemployment almost doubling, to 9% in 2020 from 4.4% last year.

“Almost paradoxically, one could say that the stronger are the measures to protect the nation’s health, the steeper the recession will be,” Madis Aben, an analyst at the ministry, told a webcast news conference.

The ministry said its sharply revised gross domestic product forecast was based on developments until March 18 and does not include government measures which have been agreed since then.

Last week, the Estonian central bank said the economy would shrink by at least 6% in 2020 due to the coronavirus outbreak and could contract by up to 14% if the situation does not ease before the beginning of August.

Last week, Estonia agreed a 15-year loan of 750 million euros with the Nordic Investment Bank (NIB) to help finance the Baltic country’s battle against the coronavirus. Separately, it issued also short-term bonds worth 200 million euros. (Reporting by Tarmo Virki; Editing by Catherine Evans)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below