Estonia economy growing twice as fast as EU average, says PM Michal

Estonian Prime Minister and Reform Party chair Kristen Michal stated that Estonia’s economy is currently growing at twice the average rate of the European Union. Speaking at a party council meeting in Tartu, Michal attributed this acceleration to the implementation of the largest income tax cut in the nation’s history.

Michal highlighted several positive economic indicators, including rising wages—with citizens seeing an average 10 percent increase in take-home pay this year—rising consumption, and growth in manufacturing and exports. He also noted that unemployment has declined to levels seen prior to 2020 and that inflation is easing.

Regarding national security, the Prime Minister noted that defense spending has been increased to 5 percent of GDP. Michal framed the Reform Party’s platform as a choice between continued prosperity and the potential economic instability posed by opposition coalitions. He emphasized that the party remains committed to liberal principles, Estonian-language education, and European values ahead of the 2027 elections.