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January 28, 2023

Estonia joins euro zone

Estonia became the 17th euro zone country in the first day of 2011, abc.net informs. It was the first former Soviet state to adopt the euro, capping 20 years of integration with the West. The new euro zone member sees the change as marking the end of its struggles since a 2009 recession lopped 14 per cent off its output. It hopes to entice investors by removing fears of devaluation and make borrowing more secure for its people, many of whose mortgages are already in euros from top Nordic banks.

The central bank, whose governor will now help decide euro zone interest rates, said the changeover was smooth.

With a budget deficit representing less than 1 per cent of gross domestic product, Estonia is the most economically sound of all the euro zone countries. It has a population of just 1.3 million inhabitants.
The country’s GDP is worth USD18 billion, making it the second smallest euro economy after Malta.

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