OREANDA-NEWS. On May 08, 2008 Deputy Governor of Eesti Pank Marten Ross gave a presentation at the Sales Management Annual Conference 2008 "All Ideas for Sale 2008" in Parnu, where he explained the changes taking place in the Estonian economy and the coming years' development trends, reported the press-centre of Eesti Pank.

Marten Ross explained at the conference the impact of the accession to the European Union on Estonia's recent years' economic development. "Joining the European Union was accompanied by several positive, but on-off effects on the Estonian economy - productivity improved, the labour market opened, people's confidence regarding the future strengthened and the financial market integrated successfully into that of Europe. It would be wrong to assume these effects will last forever," Ross said, analysing in this light why it is normal to expect economic adjustment in the next years. "The growth of domestic demand and investment will slow above all," he said, adding that a lot of attention must be paid to the development of the export sector.

"The impact of the favourable external environment that has been supporting us over the recent years has passed," Ross said. He also explained how the global increase in food prices will affect the Estonian economy. "The price hike of food in the world market, as well as the rise in the prices of fuel and thermal energy do put a pressure on our inflation rate, but the price rise factors are expected to start easing in the middle of this year," Marten Ross said.

"Although economic growth will slow this year and also next year, the pillars of the Estonian economy hold strong: the government debt level is low, the national budget and the financial sector are strong, and foreign trade deficit is decreasing. Thus, we have all the preconditions for the recovery of the economic growth after the transition period is over, but our economy will not again resume the excessive growth dimensions we could witness in 2005 and 2006," concluded the Deputy Governor of Eesti Pank.