Estonia experienced 4,1% growth in the second quarter of 2003. This result, while exceeding that of the Eurozone, is lower than that of the same period last year due to external factors and a decrease in foreign investment. In recent years, foreign capital has been investing in Estonia in anticipation of its integration into a prosperous, lower-risk economic bloc, the European Union.
Investment, both real and speculative, has prevailed for several quarters in the form of structural or real estate projects.
In the second quarter of the year, a record inflation rate of 0,7% was recorded, 1,3 percentage points lower than the eurozone average (2%). The price decrease was driven by cheaper food and fuel. Wages also increased, and although less so than in the first quarter, the average wage continued to rise, outpacing labor productivity growth. Overall, a more balanced economic climate prevailed, with slower growth as a trade-off.
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