Estonia: Economy Overview

17 November 2009
by Ina Dimireva -- last modified 09 May 2012

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.

Year of EU entry: 2004

Member of Schengen area:Yes

Political system: Republic

Capital city: Tallinn

Total area: 45 000 km²

Population: 1.3 million

Currency: euro

Listen to the official EU language: Estonian

Estonia, the most northerly of the Baltic states, regained its independence from the Soviet Union in 1991. It is a mainly flat country on the eastern shores of the Baltic Sea, with many lakes and islands. Much of the land is farmed or forested.

The Estonian language is closely related to Finnish, but bears no resemblance to the languages of the other Baltic republics, Latvia and Lithuania, or to Russian. About one quarter of the population is of Russian-speaking origin.

The capital, Tallinn, is one of the best-preserved mediaeval cities in Europe, and tourism accounts for 15% of Estonian GDP. The economy is driven by engineering, food products, metals, chemicals and wood products.

Throughout history, many other nations that ruled the region - Danes, Germans, Swedes, Poles and Russians - have influenced Estonian cuisine. Among the traditional dishes are marinated eel, blood sausage and sauerkraut stew with pork.

Famous Estonians include the writer Jaan Kross whose work has been translated into at least 20 languages, the author of the national epic (Kalevipoeg) Friedrich Reinhold Kreutzwald, and the writer, film-maker, diplomat and politician Lennart Meri.

Useful links

• The Commission's Representation in Estonia
• European Parliament office in Estonia
• Estonian State Portal
• Tourist information

Source: European Commission