Estonia: Economy Overview

Estonia, a 2004 European Union entrant, has a modern market-based economy and one of the highest 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.

Economy Overview

The current government has pursued relatively sound fiscal policies that have resulted in balanced budgets - at least up until 2009 - and low public debt. Tallinn's priority has been to sustain high growth rates - on average 8% per year from 2003 to 2007. The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, and Germany. The government is on track to adopt the euro in 2011. Estonia's economy slowed down markedly and fell sharply into recession in mid-2008, primarily as a result of an investment and consumption slump following the bursting of the real estate market bubble. GDP dropped nearly 15% in 2009, among the world's highest rates of contraction.

GDP (purchasing power parity):

$23.71 billion (2009 est.)
country comparison to the world: 115
$27.54 billion (2008 est.)
$29.02 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$19.31 billion (2009 est.)

GDP - real growth rate:

-13.9% (2009 est.)
country comparison to the world: 211
-5.1% (2008 est.)
6.9% (2007 est.)

GDP - per capita (PPP):

$18,300 (2009 est.)
country comparison to the world: 64
$21,100 (2008 est.)
$22,100 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 2.6%
industry: 26.5%
services: 71% (2009 est.)

Labor force:

691,000 (2009 est.)
country comparison to the world: 150

Labor force - by occupation:

agriculture: 2.8%
industry: 22.7%
services: 74.5% (2008)

Unemployment rate:

13.8% (2009 est.)
country comparison to the world: 144
5.5% (2008 est.)

Investment (gross fixed):

21.6% of GDP (2009 est.)
country comparison to the world: 71

Budget:

revenues: $8.381 billion
expenditures: $8.721 billion (2009 est.)

Inflation rate (consumer prices):

-0.1% (2009 est.)
country comparison to the world: 23
10.4% (2008 est.)

Commercial bank prime lending rate:

9.39% (31 December 2009 est.)
country comparison to the world: 112
8.55% (31 December 2008 est.)

Stock of domestic credit:

$20.32 billion (31 December 2009 est.)
country comparison to the world: 74
$22.87 billion (31 December 2008 est.)

Agriculture - products:

potatoes, vegetables; livestock and dairy products; fish

Industries:

engineering, electronics, wood and wood products, textiles; information technology, telecommunications

Industrial production growth rate:

-24.3% (2009 est.)
country comparison to the world: 166

Oil - production:

7,600 bbl/day (2009 est.)
country comparison to the world: 87

Natural gas - production:

0 cu m (2008 est.)
country comparison to the world: 200

Current account balance:

$898.7 million (2009 est.)
country comparison to the world: 42
-$2.245 billion (2008 est.)

Exports:

$9.08 billion (2009 est.)
country comparison to the world: 84
$12.57 billion (2008 est.)

Exports - commodities:

machinery and equipment 29%, wood and paper 13%, metals 10%, food products 8%, textiles 5%, chemical products

Exports - partners:

Finland 18.57%, Sweden 12.52%, Latvia 9.51%, Russia 9.33%, Germany 6.09%, Lithuania 4.76%, US 4.26% (2009)

Imports:

$9.783 billion (2009 est.)
country comparison to the world: 85
$15.33 billion (2008 est.)

Imports - commodities:

machinery and equipment 35%, textiles 19%, mineral fuels 19%, chemical products 9%, foodstuffs 6%

Imports - partners:

Finland 14.52%, Lithuania 10.84%, Latvia 10.47%, Germany 10.33%, Russia 8.59%,Sweden 8.34%, Poland 5.63% (2009)

Debt - external:

$25.56 billion (31 December 2009 est.)
country comparison to the world: 64
$26.16 billion (31 December 2008 est.)

Stock of direct foreign investment - at home:

$16.23 billion (31 December 2009 est.)
country comparison to the world: 70
$15.94 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$6.534 billion (31 December 2009 est.)
country comparison to the world: 53
$6.658 billion (31 December 2008 est.)

Exchange rates:

kroon (EEK) per US dollar - 11.482 (2009), 10.7 (2008), 11.535 (2007), 12.473 (2006), 12.584 (2005)

note: the krooni is pegged to the euro

Source: CIA - The World Factbook