Economy of Estonia
Tornimäe business area in Tallinn
|
|
| Currency | Euro (EUR) |
|---|---|
| Calendar year | |
|
Trade organisations
|
EU, WTO and OECD |
| Statistics | |
| GDP |
 $36.947 billion (PPP, 2015 est.) |
| GDP rank | 98th (nominal) / 113th (PPP) |
|
GDP growth
|
2.5% (2014 est.) |
|
GDP per capita
|
$29,543 (PPP, 2016. est) |
|
GDP by sector
|
agriculture 3.7%, industry 30.2%, services 66.1% (2012 est.) |
 3.3% (CPI, 2012 est.) |
|
|
Population below poverty line
|
17.5% – income below €299/month (2011) |
| 31.3 (2010) | |
|
Labour force
|
675,900 (2012 est.) |
|
Labour force by occupation
|
agriculture 4.2%, industry 20.2%, services 75.6% (2010) |
| Unemployment |
 6.984% (2015 est.) |
|
Average gross salary
|
€1,163, monthly (Q2 2016) |
| €871 / $988, monthly (2015) | |
|
Main industries
|
engineering, electronics, wood and wood products, textiles; information technology, telecommunications |
| 12th (2017) | |
| External | |
| Exports |
€11.6 billion (2015) |
|
Export goods
|
machinery and electrical equipment 21%, wood and wood products 9%, metals 9%, furniture 7%, vehicles and parts 5%, food products and beverages 4%, textiles 4%, plastics 3% |
|
Main export partners
|
 Sweden 18.5% Finland 15.8% Latvia 11.1% Russia 10.0% Lithuania 5.5% Germany 5.0% |
| Imports |
€13.1 billion (2015) |
|
Import goods
|
machinery and electrical equipment, mineral fuels, chemical products, foodstuffs, plastics, textiles |
|
Main import partners
|
Finland 15.5% Germany 11.9% Sweden 9.1% Latvia 8.6% Lithuania 8.0% Poland 7.8% Netherlands 5.6% Russia 4.7% |
|
FDI stock
|
$16.76 billion (31 December 2012 est.) |
|
Gross external debt
|
 $25.92 billion (31 December 2012 est.) |
| Public finances | |
|
9,9% of GDP (2015) |
|
| Revenues | $7.915 billion (2012 est.) |
| Expenses | $8.439 billion (2012 est.) |
| Economic aid | recipient: $135 million (2004) |
| AA- (Domestic) AA- (Foreign) AAA (T&C Assessment) (Standard & Poor's) |
|
|
Foreign reserves
|
$250.93 million (April 2011) |
Estonia is a member of the European Union and of the eurozone and, according to the IMF, an advanced economy.
Before the Second World War, Estonia's economy was based on agriculture, but there was a significant knowledge sector, with the university city of Tartu known for scientific contributions, and a growing industrial sector, similar to that of neighbouring Finland. Products such as butter, milk and cheese were widely known on the western European markets. The main markets were Germany and the United Kingdom, and only 3% of all commerce was with the neighbouring USSR.
The USSR's annexation of Estonia in 1940 and the ensuing Nazi and Soviet destruction during World War II crippled the Estonian economy. Post-war Sovietization of life continued with the integration of Estonia's economy and industry into the USSR's centrally planned structure. Before the war, Estonia and Finland had a relatively similar standard of living. By 1987, capitalist Finland's GDP per capita reached 14,370 USD, while communist Estonia's GDP per capita was around 2,000 USD.
After Estonia moved away from Communism in the late 1980s and became an independent capitalist economy in 1991, it emerged as a pioneer of the global economy. In 1994, it became one of the first countries in the world to adopt a flat tax, with a uniform rate of 26% regardless of personal income. Between 2005 and 2008, the personal income tax rate was reduced from 26% to 21% in several steps. Estonia received more foreign investment per capita in the second half of the 1990s than any other country in Central and Eastern Europe.
The country has been quickly catching up with the EU-15; its GDP per capita having grown from 34.8% of the EU-15 average in 1996 to 65% in 2007, similar to that of Central European countries. It is already rated a high-income country by the World Bank. The GDP (PPP) per capita of the country, a good indicator of wealth, was $23,631 in 2012 according to the World Bank, between that of Portugal and Lithuania, but below that of long-time EU members such as Greece or Spain. Because of its economic performance after the Soviet breakup, Estonia has been termed one of the Baltic Tigers.
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Wikipedia