The political system has remained stable despite the change of government in 2016 and the increasing popularity of the Conservative People’s Party. Yet, structural constraints such as gender inequality and population decline remain considerable challenges.

Estonia has fully recovered from the economic recession of 2008/09 and experienced robust growth in 2017/18. It has one of the most prudent public finance systems in the European Union. The country has the lowest debt-to-GDP ratio in the EU by some distance: 9% of GDP in 2017, compared to the EU average of 82%.

The governing coalition almost collapsed over the country’s position on the UN Global Compact for Migration in 2018. While the country eventually signed the agreement, and its population is highly liberal and secular in most of its attitudes, possible immigration triggers anxiety.

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