OREANDA-NEWS. On November 27, 2007 Deputy Governor of Eesti Pank Marten Ross made a presentation at the seminar "How does the cooling economic climate affect enterprises' business activity in 2008?" organised by the Estonian Trade Council, where he provided an overview of the current economic situation and near-term developments, reported the press-centre of Eesti Pank.

"Estonia's rapid economic growth has been promoted by the country's accession to the European Union, when enterprises became more effective and the labour market opened. Low interest rates and global economic expansion have also contributed to our economic growth," said Mr Ross when analysing the underlying reasons for recent years' vigorous growth. "Now, Estonia's economy has started to adjust to the more ordinary environment and will continue to grow at a more feasible rate. However, convergence to the EU average level will continue to be rather rapid," he added.

When commenting on the near-term economic trends, Ross said that as wage growth slows, domestic consumption will decline as well, thus we can expect inflationary pressures to ease already in 2008. "The changes mentioned help preserve the competitiveness of the exporting enterprises and provide confidence for the future," said the Deputy Governor. He added that one of the pillars of Estonia's credibility is our solid and stable monetary system, which will ensure Estonia's economic development in the future as well.