December 1, 2012

Which country? Government debt only 6.7% of GDP in 2011


When evaluating the health of the construction market in a given country, the health of the government in that given country is a big part of the evaluation. The governments of the world are effecting the conditions of residential activity, they are great builders themselves for non-residential construction such as schools, hospitals and elderly homes, and naturally they play the major part of infracture construction (railways, roads, harbors etc.).

And when is the government able to act? When they money issues are in balance. The problem in most Western European and North American countries is the excessive debt burden that is about to sink us all: we spend more than we earn. Quite simple to undertand but still it seems hard for most governments to realize this and also act.

There is however, one nice example of the contrary. The country is Estonia, the northernmost Baltic countries with some tiny 1,3 million population. In Estonia they use what their earn and not overspend. And maybe this the reason why they are just now doing pretty well.

I had the opportunity to meet a larger group of Estonian businessmen in Finland some time ago and I must say I was impressed about their realistic views, optimism and agressive goals. It seems that at the same time when most Europeans are not understanding what to do, the Estonians have their biggest chance of lifetime to make the impact in Europe.

By the way, where is the Estonian government money now going? E.g. Peikko is involved in quoting number of Deltabeams for university expansions. Building up new universities seems at least to me a bright idea to spend money for.

My grandfather came originally from Estonia and a small version of the above flag used to be placed in the house where I grew up in Finland in 70s and 80s. I am happy that the flag can be now also used in Estonia  (in Soviet regime it was not allowed) and I wish all the best for this tiny country in the north ! I wish there would be more countries spending only the portion they earn.

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