Key developments and challenges

It will be necessary to further expand the tradeable sector and increase exports of higher value-added products. Measures to control the deterioration in public finances, improve innovation and human capital, as well as developing key sectors for future growth will be important for investor confidence and for attracting foreign investment. Moreover, finding sustainable solutions in the energy sector will be a key challenge. With macroeconomic imbalances being reduced, Estonia is again approaching a situation where adoption of the euro may be possible. Focus on fiscal sustainability will, in this regard, be crucial for a successful participation in the euro.