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Economy at a Glance

15.03.2011

15.03.2011

Key Facts

  • Currency: from 1 January 2011 Estonia is member of eurozone and the currency in Estonia is euro.
  • Estonia became the OECD's 34th member country on 9 December 2010.
  • Tax system: 21% flat income tax, reinvested corporate profit is tax free; 20% VAT

International Credit Ratings

  • Moody's: A1, outlook stable
  • Standard & Poor's: A, outlook stable
  • Fitch: A, outlook stable

Key Indicators

Key Indicators 2003 2004 2005 2006 2007 2008 2009 2010
Population as of 1 January (million) 1.36* 1.35* 1.35* 1.36 1.35 1.34* 1.34 1.34
GDP at current prices (billion EUR) 8.7 9.7 11.2 13.4 15.8 16.1 13.9 14.5
Real growth of GDP (%) 7.6 7.2 9.4 10.6 6.9 -5.1 -13.9 3.1
GDP per capita at current prices (EUR) 6 430 7 178 8 306 9 966 11 796 12 013 10 341 10 821
GDP per capita (PPS) (EU-27=100) 54 57 61 66 69 68 64  
Annual FDI (million EUR) 822.2 770.8 2 307.3 1 431.9 1 991.1 1 179.7 1 209.0 1 196.5
FDI stock, as of 31 December (million EUR) 5 553 7 374 9 539 9 660 11 332 11 648 11 268 12 269
FDI stock per capita, as of 31 December (EUR) 4 083 5 462 7 066 7 155 8 394 8 693 8 409 9 156
Consumer price index compared to previous year (%) 1.3 3.0 4.1 4.4 6.6 10.4 -0.1 3.0
Unemployment rate** (%) 10.0 9.7 7.9 5.9 4.7 5.5 13.8 16.9
Average monthly wage (EUR) 430 466 516 601 725 825 784  
Current account balance (% of GDP) -11.3 -11.3 -10.0 -15.3 -17.2 -9.7 4.5 3.6
Deficit (-)/Surplus of state budget (% of GDP) 2.4 1.7 1.6 2.5 2.6 -2.8 -1.7  
Export (billion EUR)*** 4.003 4.769 6.202 7.719 8.033 8.470 6.481 8.747
Import (billion EUR)*** 5.715 6.703 8.229 10.711 11.439 10.896 7.271 9.245
Trade balance (billion EUR)*** -1.712 -1.934 -2.027 -2.992 -3.406 -2.426 -790 -498
Total government expenditures (% of GDP) 34.8 34.0 33.6 33.6 34.3 39.8 44.9  

* Based on the 2000 Population Census
** Unemployed/labour force according to ILO methodology;
*** Trade figures shown in special trade system
(e) Estimated value

Sources: Population Register, Bank of Estonia, Ministry of Finance, Statistical Office of Estonia, Eurostat

GDP by Main Fields of Economic Activity (as a % of total GDP)

Field of Activity 2003 2004 2005 2006 2007 2008 2009 2010
Real estate, renting and business activities 18.7 19.3 20.3 20.1 20.2 20.5 21.4 20.1
Manufacturing 18.1 17.4 17.2 17.0 16.7 16.4 14.3 16.8
Wholesale and retail trade; repair of motor vehicles etc. 14.1 14.2 14.5 14.5 14.2 13.2 12.9 12.4
Transport, storage and communication 12.8 12.6 11.4 11.1 10.4 10.4 11.0 11.4
Construction 5.8 6.0 7.1 8.7 9.5 8.7 7.0 5.7
Public administration and defence; compulsory social security  5.7 5.7 5.4 5.2 5.5 6.4 7.7 7.1
Education 4.8 4.7 4.6 4.2 4.2 4.8 5.4 5.0
Electric electricity, gas and water supply 3.6 3.5 3.3 3.1 2.9 3.1 3.9 4.6
Financial intermediation 3.8 3.9 3.6 4.0 4.2 4.2 3.4 3.7
Agriculture and hunting 2.3 2.3 2.2 2.0 2.2 1.6 1.5 2.0

Source: Statistical Office of Estonia

Due to the accession with the European Union, the methodology of macroeconomic statistics changed. The changes concerned the calculation methodology of imputed rent and consumption of fixed capital, and changed also the level of gross domestic product and gross national income in the period 1993–2003.

Main Trade Partners in 2010, as a % of total trade

figures shown in special trade system

Country Exports Country Imports
1. Finland 17.0 1. Finland 14.9
2. Sweden 15.7 2. Germany 11.3
3. Russia 9.7 3. Sweden 10.9
4. Latvia 9.0 4. Latvia 10.8
5. Germany 5.2 5. Russia 8.2
6. Lithuania 4.9 6. Lithuania 7.7
7. USA 3.8 7. Poland 6.4
8. Norway 3.4 8. Netherlands 3.3
9. Denmark 2.5 9. China 3.0
10. France 2.5 10. Italy 2.4
Others 26.3 Others 21.1

Main Exports and Imports in 2010, as a % of total trade

Main Commodity Groups Exports Main Commodity Groups Imports
Machinery and appliances 22.6 Machinery and appliances 23.5
Mineral products 15.7 Mineral products 17.4
Agricultural products and food preparations 9.6 Agricultural products and food preparations 11.0
Wood and articles of wood 9.1 Metals and articles of metals 8.9
Metals and articles of metals 9.1 Chemical products 8.0
Miscellaneous manufactured articles 7.6 Transport equipment 7.1
Transport equipment 6.5 Articles of plastics and rubber 5.6
Chemical products 4.5 Textile products 5.0
Textiles and textile articles 3.5 Wood and articles of wood 2.8
Paper and articles of paper 3.2 Paper and articles of paper 2.4
Articles of plastics and rubber 3.2 Miscellaneous manufactured articles 2.3
Others 5.4 Others 6.0

Source: Statistical Office of Estonia

Direct Investment Position in Estonia by Countries

as of 31 December 2010

Country Million EUR % of total
1. Sweden 4 327.9 35.3
2. Finland 2 853.7 23.3
3. Netherlands 1 096.7 8.9
4. Russia 438.4 3.6
5. Norway 357.4 2.9
6. Cyprus 331.3 2.7
7. Germany 295.5 2.4
8. Denmark 285.3 2.3
9. Great Britain 255.5 2.1
10. Lithuania 234.6 1.9
Others 1 792.8 14.6
Total 12 269.1 100.0

Source: Bank of Estonia

Estonia's Direct Investment Position abroad by Countries

as of 31 December 2010

Country million EUR % of total
1. Lithuania 1 354.8 30.0
2. Latvia 1 143.2 25.3
3. Cyprus 602.9 13.4
4. Russia 278.1 6.2
5. Finland 273.3 6.1
6. Ukraine 155.4 3.4
7. Italy 88.9 2.0
8. Netherlands 87.0 1.9
9. Belarus 82.6 1.8
10. Bulgaria 64.6 1.4
Others 381.6 8.5
Total 4 512.4 100.0

Source: Bank of Estonia

Telecommunications and IT

  12/2005 12/2006 12/2007 12/2008 12/2009
Telephone main (fixed) lines per 100 inhabitants 32.8 33.7 35.7 37 37
Share of digital lines (%) 83 85 86 84 93
Number of mobile phone subscribers per
100 inhabitants
107 123 147.6 121.2 117.2
Broadband connections per 100 inhabitants (%) 17 21 21 24 25
Number of households connected to broadband per 100 homes 36 44 44 50 53

Sources: Estonian Technical Surveillance Authority

  • 76% of population aged 16 to 74 are Internet users (2010, Statistics Estonia).
  • 67.8% of households have access to the Internet at home (2010, Statistics Estonia).
  • All Estonian schools are connected to the Internet.
  • All Estonian towns and villages are covered by the network of public Internet access points.
  • There are more than 1 100 free wireless Internet zones around the country. More information: www.wifi.ee
  • Incomes can be declared to the Tax and Customs Board via Internet. In 2010, the percentage of electronic tax declarations was 92.
  • Expenditures made in state budget can be followed on the Internet in real-time
  • The Government has changed Cabinet meetings to paperless sessions using a web-based document system
  • All of Estonia is covered with digital mobile phone networks

With its policies and innovative initiatives the Estonian Government is helping companies make the information technology sector one of the fastest growing in the country. The World Economic Forum's Global Information Technology Report 2009-2010 - The Networked Readiness Index, also indicates a strong Estonian standing in government and the community readiness to participate in and benefit from ICT developments: the study ranks Estonia 25th out of 133 countries thanks to its regulatory framework for ICT, making Estonia the leader among the Central and Eastern European countries.

Economic Development Perspectives

Growth and associated factors 2010-2014

Main economic indicators 2010* 2011* 2012* 2013* 2014*
GDP real growth (%) 2.0 3.6 4.0 3.8 3.5
GDP (in nominal terms, billion EUR) 13.9 14.7 15.7 16.7 17.8
GDP deflator (%) -0.5 2.0 2.5 2.7 2.8
Consumer price index (%) 2.6 2.5 2.6 2.7 2.7
Employment (15–74 years old, thousands) 565.8 570.2 579.3 589.7 599.8
Employment growth (%) -5.0 0.8 1.6 1.8 1.7
Real growth in labour capacity 7.4 2.8 2.4 1.9 1.8
Unemployment rate (ILO) 17.5 15.4 13.6 11.5 9.4
Average wage (EUR) 778.9 799.3 828.1 863.7 899.9
Wage real growth (%) -3.2 0.1 1.0 1.6 1.5
Current account (% of GDP) 4.3 2.3 0.3 -2.1 -4.4

* Forecast;
Source: Ministry of Finance, August 2010

A Comparison of Economic Forecasts from Various Institutions 2011-2012

  Economic growth, % Consumer price index, % Current account,
% of GDP
  2011 2012 2011 2012 2011 2012
IMF 3.5   2.0*   3.4  
European Commission 4.4 3.5 3.6* 2.3* 1.4 0.9
Bank of Estonia 3.9 3.9 3.5* 1.8* -2.6 -2.8
Ministry of Finance 3.6 4.0 2.5* 2.6* 2.3 0.3

* Harmonised consumer price index
Source: Ministry of Finance, European Commission, Bank of Estonia, IMF

 

More about Estonia's economy:

Bank of Estonia
Statistical Office of Estonia
Estonian Chamber of Commerce and Industry
Ministry of Finance
Ministry of Economic Affairs and Communications
Tallinn Stock Exchange
Estonian business information gateway
Enterprise Estonia
Estonian Investment and Trade Agency
Enterprise Estonia (Trade Promotion Services)
Estonian Trade Council
Estonian Development Fund
Estonian Business Association
Transformations in the Estonian economy

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