ESTONIA


A small and heavily forested country
The most northerly of the three Baltic republics of the former Soviet Union

Total area: 45,226 sq km
Population: 1.3 million
Government type: Parliamentary democracy
Administrative division: 15 counties (called “maakond”)
Capital + other major cities:Tallinn (412,000) + Tartu (103,000), Narva (66,000), Parnu (44,000), Kohlta-Järve (38,000)
Currency: EUR - on 1 January 2011, Estonia replaced the Estonian kroon (EEK) with the euro.
Languages: Estonian (official) 68.5%, Russian 29.6%, Ukrainian 0.6%, other 1.2%
Ethnicity: Estonian 68.7%, Russian 24.9%, Ukrainian 1.7%, Belarusian 1%, Finn 0.6%, other 1.6%, unspecified 1.6%
Religion: Evangelical Lutheran 9.9%, Orthodox 16.2%, other Christian (including Methodist, Seventh-Day Adventist, Roman Catholic, Pentecostal) 2.2%, none 54.1%, unspecified 16.7%
President: (Mr.) Toomas Hendrik ILVES (since 9 October 2006)
Prime Minister: (Mr.) Taavi ROIVAS (since 26 March 2014)
Date of EU accession: 1 May 2004
mapa



KEY FEATURES

  • One of the least-populous EU member states
  • Advanced, high-income economy
  • One of the most wired countries in Europe
  • 4th freest economy in Europe

MACROECONOMIC OVERVIEW

Estonia, a member of the European Union and the eurozone since 2004, has a modern market-based economy and one of the higher per capita income levels in Central Europe and the Baltic region. Estonia's successive governments have pursued a free market, pro-business economic agenda and have wavered little in their commitment to pro-market reforms. The current government has followed sound fiscal policies that have resulted in balanced budgets and low public debt.

The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, Russia, and Germany. Estonia adopted the euro on 1 January 2011. A balanced budget, almost non-existent public debt (lowest in the EU with 9.7% of GDP in 2015), flat-rate income tax, free trade regime, competitive commercial banking sector, innovative e-Services and even mobile-based services are all hallmarks of Estonia's market economy. Close geographical proximity to the Nordic countries has benefited the country in a number of ways, with Finland and Sweden together accounting for 70% of total FDI in Estonia.



Selected economic indicators, Estonia, 2010 - 2016

    2010 2011 2012 2013 2014 2015 2016*
GDP
Real GDP growth
%
2.5
7.6
5.2
1.6
2.9
1.1
1.9
GDP at current prices
€ bn
14.72
16.67
18.00
19.01
19.96
20.46
Foreign trade
Exports
€ bn
11.05
14.42
15.59
16.50
16.75
16.32
Imports
€ bn
10.11
13.47
15.41
16.08
16.07
15.48
Balance
€ bn
0.94
0.95
0.18
0.42
0.68
0.84
Prices
CPI - average inflation rate
y-o-y
2.7
5.1
4.2
3.5
0.5
0.1
0.8
PPI - industry - average
y-o-y
3.4
4.4
2.3
4.1
-1.6
-2.0
Employment
Registered unemployment
%
16.7
12.3
10.0
8.6
7.4
6.2
6.5
Average monthly gross wage
792
839
887
949
1,005
1,065
Exchange rates
EEK/USD average
11.8
-
-
-
-
-
-
EEK/EUR average
15.6466
-
-
-
-
-
-
*data for 2016 - forecast
Source: Statistics Estonia, IMF, Eurostat, 2016



STRUCTURE OF ECONOMY - KEY SECTORS


Oil shale energy, telecommunications, textiles, chemical products, banking, services, food and fishing, timber, shipbuilding, electronics, and transportation are key sectors of the economy.

Estonia produces about 75% of its consumed electricity. In 2012 about 85% of it was generated with locally mined oil shale.


The electronics industry is one of the fastest growing sectors in Estonia and a number of foreign multinationals have relocated, which has moved production towards less-labour intensive production and complex operations. About 300 companies currently employ approximately 13,000 people in this sector. Most of these companies are SMEs, which account for more than 50% of sector turnover. Skype software was developed by Estonian developers.


The construction industry is an important branch of the Estonian economy, contributing about 6.7% to total GDP. This makes construction the fifth largest contributing sector to the Estonian national economic output.


EXPORTS & IMPORTS


Estonia’s export/GDP ratio at 88% is the sixth highest in Europe.


2015 export and import data:




Main import partners:
Finland - 9.9%
Germany - 9.7%
Russia - 9.6%
China - 8.0%
Lithuania - 6.6%


Main export partners:
Sweden - 17.3%
Finland - 14.8%
Russia - 9.7%%
Latvia - 9.5%
Lithuania - 5.4%


Estonia external trade - 2015




See references for our track record in Estonia.



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