High exports and wage cuts have helped to rebalance economies

ESTONIA and Ireland have rebalanced their economies faster thanthe rest of the eurozone periphery by increasing exports and cutting wages, boosting their medium- term growth prospects, according to credit ratings agency Standard & Poor’s.

But other eurozone economies that had been living beyond their means have been slower to restore competitiveness and so tackle deficits, S&P said in a study of five countries including bailout recipients Portugal, Greece and Ireland, as well as Estonia and Spain.

S&P compared the current account deficits, export growth and falls in unit labour costs across the five, which all had large current account deficits in 2008.