Estonia’s Economy Contracts At Record Pace At The End Of 2008

Estonia’s economy contracted at the fastest year on year rate in at least 15 years in the fourth quarterof 2008. Commenting on the news the Estonian Finance Ministry restricted himself to the obvious, “the recession may deepen this year”, he said. The economy shrank an annual 9.4 percent, the second-worst performance in the European Union (after Latvia), following a 3.5 percent year on year contraction in the third quarter. The contraction was 4.2% quarter over quarter. That is 16.8% annualised. Absolutely horrible.

“This is the worst economic crisis in Estonia since Estonian independence” in 1991, Lars Christensen and Violeta Klyviene, analysts at Danske Bank A/S said in an e-mail today. “Nobody can now deny that the crisis in the Baltic economies is at least as bad as the Asia crisis of 1997-1998 or the Argentinean crisis of 2001-2002.”

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About Edward Hugh

Edward 'the bonobo is a Catalan economist of British extraction. After being born, brought-up and educated in the United Kingdom, Edward subsequently settled in Barcelona where he has now lived for over 15 years. As a consequence Edward considers himself to be "Catalan by adoption". He has also to some extent been "adopted by Catalonia", since throughout the current economic crisis he has been a constant voice on TV, radio and in the press arguing in favor of the need for some kind of internal devaluation if Spain wants to stay inside the Euro. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again".

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  1. Pingback: Before the Baltic Tigers | afoe | A Fistful of Euros | European Opinion

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