Positive Impact: Ukrainian Refugees Contribute More to Estonia's Economy Than Receive in Aid

Estonian economists believe that refugees from Ukraine have brought more benefits to the local economy than they have received in assistance from the country. This is attributed to their tax contributions to the Estonian budget and the consumption of local goods and services, positively impacting Estonia's economy, as reported by ERR.

According to Raul Eamets, Chief Economist at Bigbank, "Comparing the amounts Ukrainian refugees receive in social benefits, they are significantly less than what Ukrainians contribute to the Estonian economy through taxes or consumption activities."

From February 2022 to December 2023, Estonia has welcomed 153,322 refugees from Ukraine, predominantly consisting of women, children, and pensioners. Experts note that this influx has led to high social benefit expenditures of 251 million euros from the first quarter of 2022 to the third quarter of 2023. Although the flow of Ukrainian refugees has significantly decreased, it has not come to a complete halt.

Raul Eamets anticipates a gradual reduction in social payments to Ukrainians over time. He believes that refugees will sufficiently adapt to the Estonian language and align their qualifications with Estonian legislation. Consequently, they will be able to secure well-paying positions and help address the labor shortage in Estonia, particularly in the fields of education and healthcare. However, currently, many Ukrainian citizens in Estonia are working outside their professional spheres, according to the expert.

As of now, the total number of employed Ukrainians in Estonia is 28,115, with an average salary of 1393 euros. Additionally, as of October 31 this year, Estonia had 4,112 unemployed Ukrainian citizens, slightly exceeding 8% of the total number of unemployed residents.

It is worth noting that Czech publication Ceske Noviny reported in late November that Ukrainian refugees in the Czech Republic also contribute more in taxes than they receive in state aid. Approximately 60% of Ukrainian refugees between the ages of 18 and 65 are employed in the Czech Republic. Currently, there are around 360,000 individuals from Ukraine with protective visas in the country.

The Gaze reported that the lower house of the Czech parliament approved the extension of temporary protection for individuals who left Ukraine due to the Russian invasion until March 2025. The project received support from coalition representatives and the opposition movement ANO, while the SDP party's efforts to reject the bill were unsuccessful.