2012 Euro Plus Monitor: Estonia has one of the eurozone’s healthiest economies
Estonia has one of the healthiest economies in the eurozone along with Luxembourg and Germany, concluded the recently published 2012 Euro Plus Monitor, issued by the Hamburg-based Berenberg Bank and the Brussels-based think-tank Lisbon Council.
The annual report, which ranks 17 eurozone members on their fundamental health and adjustment process, states that Estonia is the top performer in fundamental health in the zone. “Recovery after credit bubble recession in 2007 is mostly complete, and the adjustment effort is thus fading. Estonia is the most resilient economy in the eurozone,” it added.
According to the report, Estonia’s strengths are deregulated labour, product and services markets, a very comfortable fiscal position and a low consumption rate. As weaknesses, the report pointed out a legacy of long-term unemployment, fast-rising unit labour costs before the crisis and the low household savings rate.
The report concluded that the eurozone is turning into a more balanced and potentially more dynamic economy thanks to market pressure and the constant demand for structural reforms. “The three-year-old sovereign debt crisis, started by unsustainably high debt in Greece, has forced Athens, as well as Ireland, Portugal, Spain and Italy, to embark on ambitious economic reforms to win back market confidence,” it added.