Entrepreneur Jüri Käo says that the government can talk the economy down or up. But if the government says everything is fine while people feel it isn't, then the government's words are empty.
Estonians are experiencing two opposing trends. On one hand, people lack confidence due to the geopolitical situation. People are stressed and don't want to buy or invest anything. All entrepreneurs in Estonia feel this stress. On the other hand, politicians claim that people in Estonia are living better than ever before. This is true, but it depends on how you look at it.
The government talks a lot about the economy and hopes it will improve. But the first 15 days of January were weaker than last year. Käo believes a small upturn will come if the tax threshold is removed. But this depends on whether people start buying and investing again.
The government tries to speak positively. But if people feel this doesn't match reality, the words are empty. Käo also discusses Russia's war in Ukraine. This affects people's daily lives more than assumed. Geopolitics makes people uncertain.
Estonia's budget deficit this year is 4.5% of GDP. Käo says the state's finances are difficult. Defense costs are high, and the tax rally was triggered by removing the tax threshold. It will take time to improve the state's finances.
Käo believes a small upturn is coming, but he doesn't trust the Bank of Estonia's forecast about it. He also talks about the car tax. People expect the car tax to be abolished, but this depends on politics.
Käo is cautiously optimistic about Estonia's future. He believes a small upturn is coming, but geopolitics has a big influence. The government's messages should be realistic.