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 in 2015 provided grants totalling €40,000 for projects in Moldova and €30,000 for projects in Georgia.
The EBRD’s latest strategy for Estonia was adopted on 10 February 2016
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 2020 -6.0%
Current EBRD forecast for Estonia’s real GDP growth in 2021 7.0%
GDP growth in Estonia decelerated to 4.3 per cent in 2019, but was still the second highest in the CEB region. A double-digit recovery in investment, strong exports and private and public consumption all contributed to robust growth last year. While the economy was expected to register a gradual slowdown this year and next, the outbreak of the coronavirus pandemic has shifted the expectations towards a substantial contraction in economic output, at least in 2020. As a small and open economy, with the value of exports and imports representing more than 170 per cent of GDP, Estonia is particularly vulnerable to external shocks. In addition, a high exposure to the tourism sector, which makes up 15 per cent of GDP, has already translated into closures of tourism-oriented businesses, such as restaurants, hotels and transport companies.
The domestic lockdown has aggravated businesses’ liquidity problems and weighed on employment. The government has started implementing a broad package of support measures targeting the labour market, liquidity support, tax relief as well as increased capacity of Kredex, a state-owned financial institution. Local governments can receive financial support towards purchases of personal protective equipment, investment and road maintenance. A lockdown exit strategy was approved by the government at the end of April, but it does not describe steps in detail. GDP is forecast to fall by 6.0 per cent in 2020 before rebounding strongly in 2021, by 7.0 per cent.
Estonia in the EBRD’s 2019-20 Transition Report