WASHINGTON -(Dow Jones)- Estonia is experiencing its most severe recession since regaining its independence in the 1990s as domestic demand has fallen in line with waning consumer confidence, the International Monetary Fund said Tuesday.

The fund said Estonia's stock market index is below its pre-boom level and that real estate prices are more than 20% below their peak. Gross domestic product growth has "turned strongly negative," the IMF wrote in a report following an annual review of the country's economic performance.

Still, Estonia's financial sector has been "resilient" to the global credit crisis, the fund said. Its banks have maintained access to liquidity despite rising costs and years of strong profits have allowed them to build robust capital buffers.

Recovery "will require a revival of foreign and domestic demand, continued financial stability, and prudent macroeconomic management," the report said.

Tags: Dow Jones News, noticias, china, japon, acces, apostar