OREANDA-NEWS. On May 29, 2008 Deputy Governor of Eesti Pank Andres Sutt participated in the Aripaev conference dedicated to county entrepreneurs, giving a presentation "A version update in the Estonian economy", where he spoke about the changes taking place in our economy and the next years' possibilities, reported the press-centre of Eesti Pank.

Andres Sutt discussed the Estonian economic development of the past 15 years by dividing it into three stages. "To start with, during the period 1992-1999 the Estonian economy underwent the necessary changes to transfer from early capitalism to capitalism and the period ended with the per capita GDP level constituting 42% of the average of the current 27 EU Member States," Sutt said.

He added that the following seven years, 2000-2007, formed the second stage of Estonia's economic development and can be referred to as our arrival in Europe. "This period is characterised by integration with the Nordic Countries, joining the EU, and a very high level of investment. Our development was also supported by a favourable global economic situation. As a result, our GDP per capita level increased to nearly 72% vis-a-vis the 27 EU Member States," Sutt described Estonia's economic development.

"But just like software, economy, too, needs a version update once in a while. This does not mean the current economic model should be discarded. Instead, it needs to be updated. The forthcoming 12-18 months are the right time to make changes and to lay foundations for a new upturn based on innovation at the level of both enterprises and the state.

This is the only way to ensure the global competitiveness of our goods and services. Readiness for change and right decisions are especially important at this very juncture, since the external environment is currently less favourable than in the turning points of earlier economic cycles. Estonia's balanced budget and fixed exchange rate help ensure a stable economic environment and thus also our reliability and attractiveness for investors," said Andres Sutt.

He added that the high level of investment and integration with the Nordic Countries, which belong to the top of the world as regards competitiveness, give Estonia a good starting position. If we use our possibilities wisely, our economy may catch up with the European level by the end of the next decade.