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https://www.eesti.ca/a-weak-economic-immune-system/article21546
A weak economic immune system?
04 Nov 2008 EWR Online
Martin Lindpere, the economist of the Bank of Estonia, stated that the economic outlook compiled by the European Commission carries the same message as the other recent projections – the global economy is decelerating and therefore the economies’ immune system is weakening as well, writes Postimees Online/LETA.

“Hence none of the economies offer full storm shelter. The reason lies mostly in the financial crisis that is shaking the global economy, which is only beginning to reach the economic growth indicators,” Lindpere explained.

He added that EU economies have to take into account the fact that economic growth will have significantly less support from loans and hence the economic growth will be smaller as well. “But even if there were no financial crisis, economic cycles in the EU countries would not occur at once – not everyone can be the first,” explained Lindpere.

“Cheap loan funds increased the economic volume easily, in the future more efforts will have to be made in the name of retaining and enhancing it,” noted the central bank’s economist.

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