Strong Estonian Recovery Also Continued

Estonia, like Latvia registered 1.7% (7% annualized) growth in the third quarter compared to the second, while growth compared to Q3 2011 was 3.4%.. Growth the latest year was lower than in Latvia, but as Estonia's growth was even higher than Latvia's in 2010 and 2011, cumulative growth since Q3 2009 was even higher at 18.9%. As in Latvia, Estonia has achieved this while shashing government spending and keeping a fixed exchange rate (since January 2011, Estonia is part of the euro area, and its previous currency kroons had a fixed exchange rate to the euro before that).