TALLINN: The economy of euro zone member Estonia will grow more slowly than expected this year, while the budget deficit will be slightly higher than previously forecast, the Finance Ministry said in a new economic outlook on Monday.
The economy is expected to grow 2.0 percent this year, less than the previous outlook of 3.6 percent, the ministry said in a statement.
The public sector budget deficit this year was seen at 0.7 percent of GDP rather than the 0.6 percent deficit previously forecast.
The country, which joined the euro zone in 2011 and has among the best public finances in Europe, has been supported by relatively strong domestic demand in the recent years, but manufacturing and exports have been hit by the euro zone crisis and economic weakness in export partners and neighbours Finland, Latvia and Russia.
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