Topic: Sustainable Economic Policy
Country: Estonia
Delegate Name: Demetria Coleman
School: Flint Southwestern Classical Academy
Topic page: background guide and all position papers All Estonia position papers GLIMUN 2015 committees
In December of 2010 Estonia became the 34th member to join the Organization for Economic Co-operation and Development. A few months later, in January of 2011, we begun the transition from the Estonian Kroon to the Euro. A requirement Estonia is taking, in order for a stable economic development, is macroeconomic stability, which will support both internal and external balance. Through increasing economic flexibility, the supporting of the business environment, and improving the efficiency within the labor market we have become the key factors that help guarantee sustainable economic development. Our goal is to carry on with a responsible fiscal policy that will ensure a low level of government debt is maintained, which is a prerequisite for ensuring the long-term sustainability of public finances. Estonia hopes to continue and maintain rapid growth since our economic growth turned positive in 2010 and the annual Gross Domestic Product (GDP) grew by 2.6% compared to the previous year. According to Statistics Estonia, in 2013 the annual GDP increased by 1.6% (in 2012 – 4.7%, in 2011 – 8.3%) compared to the previous year. In 2014 the Estonian economy grew 2.1% compared to the previous year. We are also seeing a decrease in unemployment within Estonia with the unemployment rate falling for the second quarter of 2015 to 6.5% from same period in 2014. In 2016-2017 Estonian economic growth is expected to stabilize at around 3.0%! One of the goals expressed in Estonia's State Budget Strategy for 2015-2018 is to reduce the implicit tax rate on labor to 33.2 percent.
