Stenbock House, 14 March 2018 – at a meeting with representatives of the International Monetary Fund (IMF), Prime Minister Jüri Ratas said that the demographic situation is and will continue to be Estonia’s biggest challenge, which should be addressed with state reforms and comprehensive family policy as well as through digitising and automating the economy.
At the meeting, Prime Minister Jüri Ratas introduced the government’s budget policy as well as activities to support long-term economic growth, increase productivity, and solve problems on the labour market.
Ratas highlighted that the economic growth of 4.9% achieved in 2017 was significantly larger than in previous years and encompassed most areas. According to the prime minister, the government is making an effort to ensure that economic development is sustainable and inclusive.
The issue of the structural balance of the state budget was also discussed during the meeting. Ratas noted that Estonia meets the objective of the medium-term budget balance and will reach a balance by 2020, according to current plans. At the same time, the low debt burden of the country will be decreased. During this period, investments into the development of a more equal society, increasing productivity, the sustainability of the healthcare system, and strengthening our defence capability as well as co-financing projects financed from the funds of the EU, such as Rail Baltica, will be of most importance.
The parties agreed that a well-considered and future-oriented tax policy is key to maintaining a stable economic development, adding that it is important to be prepared for changes brought along by the next long-term budget of the European Union and the aging population.
Additionally, the prime minister gave an overview of the discussion on the state budget strategy for 2019–2022, which will start soon, the work of the Economic Development Committee of the government in increasing productivity and solving the problems of employment, including measures taken to increase the quotas of foreign labour. He also spoke about the process of the work ability reform, the pension reform initiated by the government, and other matters closely connected to Estonian economic development.
The delegation of the IMF will publish their assessment on Estonian economy next Monday.