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The Economy of Estonia

Estonian Economy

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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. Estonia's successive governments have pursued a free market, pro-business economic agenda and have wavered little in their commitment to promarket reforms. Tallinn's priority has been to sustain high growth rates - on average 8% over the last four years. The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, and Germany. The current government has pursued relatively sound fiscal policies, resulting in balanced budgets and low public debt. Rapid growth, however, has made it difficult to keep inflation and large current-account deficits from soaring, putting downward pressure on the country's currency. The government has not given up on joining the euro, but has repeatedly postponed its euro adoption target. Estonia's economy slowed down markedly and even fell 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:

GDP - real growth rate: -3% (2008 est.) 6.3% (2007 est.) 10.4% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 2.9% industry: 32.3% services: 64.8% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.5% highest 10%: 27.6% (2003)

Distribution of family income - Gini index: 34 (2008)

Inflation rate (consumer prices):

Labor force: 686,000 (2008 est.)

Labor force - by occupation: agriculture: 4.7% industry: 33.7% services: 61.6% (2007)

Unemployment rate: 6.2% (30 September 2008 est.)

Budget: revenues: $8.92 billion expenditures: $9.091 billion (2008 est.)

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

Industrial production growth rate: 2.5% (2008 est.)

Electricity - production: 12.19 billion kWh (2007)

Electricity - production by source:

Electricity - consumption: 7.18 billion kWh (2007)

Electricity - exports: 2.765 billion kWh (2007)

Electricity - imports: 345 million kWh (2007)

Oil - production: 7,430 bbl/day (2007 est.)

Oil - consumption: 30,440 bbl/day (2006 est.)

Oil - exports: 7,000 bbl/day (2005)

Oil - imports: 28,170 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 0 cu m (2007)

Natural gas - consumption: 1.003 billion cu m (2007)

Natural gas - exports: 0 cu m (2007)

Natural gas - imports: 1.003 billion cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: potatoes, vegetables; livestock and dairy products; fish

Exports: $13.16 billion f.o.b. (2008 est.)

Exports - commodities: machinery and equipment 29%, wood and paper 13%, metals 10%, food products 8%, textiles 5%, chemical products (2007)

Exports - partners: Finland 17.9%, Sweden 13.2%, Latvia 11.4%, Russia 8.9%, Lithuania 5.8%, Germany 5.2%, US 4.1% (2007)

Imports: $16.23 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment 35%, textiles 19%, mineral fuels 19%, chemical products 9%, foodstuffs 6% (2001)

Imports - partners: Finland 15.9%, Germany 12.8%, Sweden 10.1%, Russia 10%, Latvia 7.6%, Lithuania 6.9%, Poland 4.5% (2007)

Debt - external: $29.5 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: krooni (EEK) per US dollar - 10.7 (2008), 11.535 (2007), 12.473 (2006), 12.584 (2005), 12.596 (2004) note: the krooni is pegged to the euro

Fiscal year: