Competitiveness and Future Outlooks of the Estonian Economy
Figure 3. Dynamics of wages and productivity in Estonia, 1994-2002 I quarter31
%
EEK
30
7000
Real growth of wages
25
6000
Average gross wage 20
5000
Real growth of productivity
15
4000
10
3000
5
2000
0
1000
-5
I
II
III
IV
I
1994
II
III
1995
IV
I
II
III
1996
IV
I
II
III
IV
I
1997
II
III
IV
1998
I
II
III
1999
IV
I
II
III
2000
IV
I
II
III
IV
I
0
2001
Source: Statistical Office and calculations of PRAXIS.
In 2001, the productivity of the Estonian economy amounted to only 37% of the European Union’s average, labour force productivity in the manufacturing industry amounted to only 26% of the EU average (Table 2).32 Table 2. Labour productivity in the manufacturing sector 1998, EU15 = 100% Labour productivity in the manufacturing sector
Labour productivity of the economy
Group 1
20–40% Bulgaria Latvia Estonia (26%) Lithuania Romania Poland
>40% Bulgaria Latvia Lithuania Romania Estonia (37%) Poland
Group 2
40–80% Slovakia Hungary Turkey Portugal Czech Republic Greece Slovenia
40–80% Turkey Slovakia Portugal Hungary Czech Republic Slovenia Greece
Group 3
80%> Rest of EU
80%> Rest of EU
Source: Eurostat, Statistics in Focus, 2, 13/2001: Value added, employment, remuneration and labor productivity in the candidate countries.
31
Real wage is deflated by GDP deflator.
32
Eurostat Statistics in Focus, 2 No 13/2001: Value added, employment, remuneration and labor productivity in the candidate countries.
17