Investor Presentaiton

Current account is in a small deficit Current account is forecast to rapidly move towards balance as energy prices are falling • Estonia has a strong net external creditor position compared to its rating peers • The current account deficit widened to 3.2% of GDP in 2022 from 2.6% of GDP in 2021, primarily impacted by the significant increase in imported energy prices and stocking of goods associated with the war in Ukraine and the introduction of sanctions • With a dynamic export sector, current account deficits are expected to decrease in the coming years, largely financed by non-debt creating FDI*. The new budget strategy forecasts the current account deficit to shrink to 0.6% of GDP in 2023, revised down from the Spring Forecast (1.6%)¹ . The impact of the Russia-Ukraine conflict on the external accounts is contained by the fact that around 80% of exports to Russia are re- exported, bearing a lower domestic value added • A strong track-record of attracting foreign investment into high value- added sectors is further evidence of the openness of Estonia's economy During the first nine months of 2023, FDI flows to the Estonian economy started to recover from the 2022 low, reaching 2.7% of GDP. It is anticipated that geopolitical tensions affected greenfield investments in 2022, however, the latest data indicates a stronger trajectory, especially in FDI flows to the financial sector and professional, scientific activities Net foreign direct investment 4,000 3,000 2,000 1,000 0 -1,000 بل 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Current account balance (% of GDP) 8 6 4 2 0 -2 -4 -6 -8 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Goods and services Secondary income Source: Eurostat Net external debt (% of GDP) 0 -10 -20 15 10 -30 5 -40 -36.4 -35.2 -32.9-31.5 0 -50 -5 12.1.13.5 -11.5 -17.7 Primary income Current Account -0.7 -5.0 -8.7 -10.0 Estonia AA Sovereigns median A Sovereigns median ■2022 2023f 2024f 2025f Net FDI, EURm (lhs) Net FDI, % GDP (rhs) 18 Source: Statistics Estonia Note: (1) Ministry of Finance of Estonia, Summer 2023 forecast; (*) FDI: Foreign Direct Investment Source: Fitch Sovereign Data Comparator December 2023 酥酥 REPUBLIC OF ESTONIA MINISTRY OF FINANCE

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