25 May (BNS)

The Organisation for Economic Co-operation and Development predicts that Estonia's gross domestic product will grow by 5.9% at market prices and the harmonised index of consumer prices will rise by 4.6% this year. According to the forecast, GDP will grow by 4.7% and inflation reach 3% in 2012.

The general government deficit, estimated to form 0.5% of GDP this year, is seen rising to 1.7% of GDP next year. The OECD forecast of the unemployment rate is 14.2% in 2011 and 13% in 2012, compared to 16.8% in 2010.

In the organisation's assessment, export-driven economic recovery will continue to reflect the favourable external environment outlook and improved competitiveness this year. Private consumption will in the OECD's view pick up in 2012 along with a decline in unemployment. Growth of real wages is also possible next year.

Previously the OECD forecast 3.4% economic growth for Estonia this year. Consumer prices were expected to rise at the same rate.