In Estonia we focus on:
Supporting investments in energy efficiency and renewable energy. Supporting energy efficiency investments particularly in industrial companies as well as investments in renewable energy generation continue to be the EBRDs key priorities in Estonia.
Improving the competitiveness of the export sector. To assist in improving exporting enterprises competitiveness through increased usage of advanced technology and to invest in equity and mezzanine funds in order to facilitate further development of the SME sector.
Supporting cross-border investments by Estonian companies, particularly in the EBRD’s region of operations, to enable Estonian firms to establish a foothold in foreign markets and benefit from efficiencies that access to larger markets would bring.
Estonia is a supporter of the Eastern Europe Energy Efficiency and Environment Partnership Fund and has contributed €602.000 to date in activities in Belarus, Ukraine, Georgia and Moldova.
The EBRD’s latest strategy for Estonia was adopted on 15 September 2021
Estonia's policy response to the coronavirus crisis
The EBRD is monitoring Estonia's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.
Current EBRD forecast for Estonia’s real GDP growth in 2022 1.5%
Current EBRD forecast for Estonia’s real GDP growth in 2023 2.5%
The Estonian economy grew strongly by 8.3 per cent in 2021, with GDP now exceeding pre-pandemic levels. Increased economic activity was especially visible in the manufacturing sector. Exports also grew strongly, but rising inflation contributed to a moderate slowdown in private consumption growth in the fourth quarter of 2021 and, at 14.8 per cent in March 2022, is affecting the disposable income of households. In order to mitigate the effects of inflation, government measures so far include indexation of pensions from April 2022, energy price subsidies for vulnerable households and compensation for higher electricity prices. Although exports to Russia are low, the war on Ukraine still affects the Estonian economy mainly through the disruption of imports of mineral fuels, fertilisers and related products. Shortages of workers in services sectors could be alleviated by granting jobs to refugees from Ukraine. Estonia has announced a suspension of gas imports from Russia (gas makes up 8 per cent of its energy-mix, but more than 80 per cent was imported from Russia), putting pressure on the LNG terminal in Paldiski. Overall, GDP growth is anticipated to reach 1.5 per cent this year, before recovering to 2.5 per cent in 2023.