The implementation of such measures contributed to Estonia’s prudent fiscal record and the rapid unwinding of the external and internal imbalances that had built up during the boom years. Competitiveness is gradually being restored and the current and capital account balance has recorded a surplus since the beginning of 2009.
The adjustment of nominal wages has been, and will continue to be, an essential element of the gradual correction of competitiveness losses and the return to sustainable output growth. Developments in the public sector, where nominal wages declined by around 10% in 2009, contributed to the adjustment of wages in the economy as a whole.