Letter to Edward Hugh

Sir, Yours “Estonia’s Long Awaited Recovery May Still Be Delayed Yet Awhile” is correct, but in a case of small and low ecomomic activity level emerging economy, like Estonia, the good GDP growth rate by quarters is no credible recovery indicator, so also decrease of unemployed: as low level produces easily high growth rates, and smallness enabels easy exit of specialists + naturally high level of foreign trade is connected wih high volatility, especially in case of the big unpredictable neighbour as ours etc.

 More important are indicators more closely connected with the level of sustainability/capacity/potential/institutional evolution/stability.

 What I certainly missed, in your although excellent analysis, in the  present Estonian context were indicators as: outflow of capital (btw in case of Estonia, without domestic taxing), domestic investments rate, gross external debt, economic inequality and social capital, savings rate,  reforms and economic system quality evolution (especially tax system), public economics knowledge structure quality evolution, rate of net national income in GDP, dynamics of  housholds incomes etc.

With respect, Ülo Ennuste, ylo.ennuste@mail.ee