[lbo-talk] A big asterisk to the Estonian recovery

Michael Pollak mpollak at panix.com
Sun Mar 4 05:09:42 PST 2012


http://fistfulofeuros.net/afoe/2012-the-year-we-all-learn-to-live-dangerously

A Fistful Of Euros

2012 - The Year We All Learn To Live Dangerously

Posted on February 23, 2012 by Edward Hugh

<snip>

Aside from Greece, the number which has probably raised most eyebrows

is the downward revision of the Estonian outlook, by two full

percentage points, from 3.2% to 1.2%. In fact the Estonian economy

started to contract in the last three months of last year, but now the

EU have also let the big secret is out of the bag - Estonia's "miracle

growth" wasn't only being driven by strong fiscal austerity, it was

also being strongly boosted by the activities of just one company,

Swedish mobile phone giant Ericsson, who took the decision to locate an

assembly plant there. According to reports in the local press the

company increased its output sixfold between 2010 and 2011.

[Estonia+IP.png]

Now things aren't going so well for the Swedish company, and they are

cutting back their Estonian activity accordingly, sending Estonian

industrial output down sharply again (see chart above).

<end excerpt>

Michael



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