An index of coincident economic indicators for Estonia

Abstract

This paper reviews the theoretical methodology on economic indicators, and constructs an aggregate index of coincident economic indicators for Estonia.The index tracks economic activity fairly well for the sample period.The evolution of the index in the first eight months of this year suggests that the pace of economic expansion in Estonia is slowing down significantly: from a growth rate of 10.5 percent in the first eight months of 1997, to 6.0 percent in the same period of 1998.