Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Estonia to Run Budget Deficit Due Worsening European Economy

04/26/2012 | 12:20pm US/Eastern
Recommend:
0

Estonia, the euro zone's newest member, said Thursday it will run a budget deficit in 2012 as a worsening European economy curbs revenues.

The shortfall will be 0.5% of gross domestic product this year, the government said in a budget strategy approved at its weekly meeting in the capital Tallinn. The plan foresees a surplus of 0.1% of GDP in 2013 with annual increases to a 1% surplus in 2016.

Estonia became the 17th member of the euro zone on Jan. 1, 2011, amid the region's sovereign debt crisis that has seen Greece, Portugal and Ireland bailed out by the European Union and International Monetary Fund. The currency zone's economy contracted 0.3% in the fourth quarter as governments raised taxes and cut spending.

The EU economy will stagnate this year, the European Commission said in February. Already the U.K., Greece, Italy, Portugal, Ireland, Belgium, Denmark, The Netherlands, Czech Republic and Slovenia are in recession, defined as two consecutive quarters of economic contraction.

Finance Minister Juergen Ligi told a news conference the crisis in Europe meant Estonia won't meet earlier expectations of budget surplus this year. The country had a surplus of 1% of GDP last year and public debt of 6%, among the lowest among the 27-member European Union.

The ministry cut this month its estimate for 2012 economic growth, to 1.7% from a previous 3% forecast.

Finance Ministry: http://www.fin.ee

-By Liis Kangsepp, Dow Jones Newswires; +46 8 545 131 01; djnews.stockholm@dowjones.com

Recommend :
0
React to this article
Latest news
Date Title
<1m ago SABMILLER : Grand Malt, Hero Lager Win Monde's Gold Award
<1m ago The New ‘Mother Of All Batteries’ Helps Make Airport Security a Breeze for Smartphone and Tablet Users
<1m ago ELEKTA PUBL : President and CEO acquires shares
<1m ago NOKIA : HERE powers majority of new cars unveiled at Paris Motor Show
1m ago BILFINGER SE : Chairman of the Supervisory Board Dr. Bernhard Walter steps down prior to the end of his term (DGAP Adhoc)
2m ago EKSPRESS GRUPP : statement of claim announcement (CORRECTION)
2m ago J SAINSBURY : *exane bnp cuts sainsbury price target to 250 (280) pence - 'neutral'
4m ago RESOURCE EQUIPMENT : ASX Waiver listing ruling
4m ago PANTHEON PARTICIPATIONS : Reports Net Asset Value Rise
4m ago POLARCUS : Alima acquiring 3D offshore Cote d'Ivoire
Latest news
Advertisement
Hot News 
ORDINA : investigates Zembla claims: initial findings reveals no irregularities
GENERALE DE SANTE : Change of control and refinancing of Générale de Santé
MASIMO : Philips Electronics to appeal ruling in $467 million patent lawsuit
SAIPEM : awarded new offshore E&C contracts in the Gulf of Mexico totalling $750 million
SONOVA : completes acquisition of Comfort Audio
Most Read News
1d ago JANUS CAPITAL : Pimco Total Return Fund posts record $23.5 billion net outflow in September
1d ago JPMORGAN CHASE : to Present at the Bank of America Merrill Lynch Banking & Financial Services Conference
4h ago TESLA MOTORS : Musk says 'about time to unveil the D and something else'
1d ago TOTAL SYSTEM SERVICES : Pimco Total Return Fund posts record $23.5 billion net outflow in September
1d ago CANADIAN PACIFIC RAILWAY : CP Rail looks to boost revenue to C$10 billion in 2018
Most recommended articles
4m agoDJEurope Stocks Stay on Downward Course
5m ago UK lender Wonga says to write off debt for 330,000 customers
7m agoDJPHILIPPINE LONG DISTANCE TELEPHONE : PLDT in Line for Windfall From Stake in Rocket Internet After IPO
12m ago DAIMLER : CEO lowers expectation for global car market growth
16m agoDJHong Kong Protesters Consider Escalation
Dynamic quotes  
ON
| OFF