Estonian economy has recovered well from the global financial crisis and has shown positive economic development since 2010. The GDP growth since 2013 has been moderate with 1.2% in 2015 and for 2016 economic growth of around 2% is estimated. Unemployment rate has decreased significantly since the peak of 16.7% in 2010 to 6.5% in the 2Q16 and participation rate of the labour force is also at the peak level, leading to increase in wages and improving ability of the population to service their financial obligations. Economy is expected to remain on the growth track, but if the country would experience negative economic shock due to internal or external factors, it will have an adverse effect on Bondora Group´s business, performance of the loans, Bondora Group’s and the investor's financial condition, cash flow and operational results.
Measure to mitigate risk
Credit rating agency Moody´s has given Estonia an a A1 rating with stable outlook. Economic perspectives of Estonia are seen as positive. Regardless, Bondora Group has already demonstrated that it can operate successfully also during an economic downturn.