The global economy The first is developments in the global economy. Economic growth in advanced economies is slowing as restrictive monetary policy takes effect. Even so, labour markets have been surprisingly resilient, with unemployment rates still close to multi-decade lows. Headline inflation is declining as COVID disruptions are overcome, energy prices fall and food price inflation eases.
However, the Estonian economy, and the citizens that support it, adapted rather quickly to the new economic environment, proving a remarkable capacity for adjustment. This speaks for the flexibility of Estonia’s economy and the “alertness” of its people. The new economic environment required prompt, determined action and the adoption of difficult policy measures.