from: http://globaleconomydoesmatter.blogspot.com/2008/01/is-estonia-now-definitely-heading-for.html
and: http://balticeconomy.blogspot.com/2008/01/estonia-inflation-december-2007.html
Inflation is going up, a lot.
Retail Sales and Consumer Confidence is dropping.
Industrial Output is dropping.
Salaries are increasing.
Unemployment rate is going down.
Inflation going up means stuff is getting more expensive, especially house and food prices, consequentially people avoid spending too much money, they buy less stuff, consequentially the industry has less demand and they will produce less.
Also, to try to keep up with higher prices of goods, salaries have to rise.
Overall Estonian economic growth is slowing down at the moment (the GDP* rate) and the biggest concern might be that the continued high rise of inflation might lead to an out of equilibrium situation(the "hard landing" mentioned in the original article), which consequently could slow down more the GDP growth for next 3 years(maybe)
This is a concern not only for Estonia but overall baltic country's.
*GDP = consumption + investment + (government spending) + (exports − imports)
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