Global InformationEconomy of Estonia information
 Central business district of Tallinn | |
| Currency | Euro (EUR, €) |
|---|---|
Fiscal year | Calendar year |
Trade organisations | EU, WTO and OECD |
Country group |
|
| Statistics | |
| Population |  1,340,068 (1 January 2021)[3] |
| GDP |
|
| GDP rank |
|
GDP growth |
|
GDP per capita |
|
GDP per capita rank |
|
GDP by sector |
|
Inflation (CPI) | 9.7% (2023)[4] |
Population below poverty line |
|
Gini coefficient |  30.5 medium (2019, Eurostat)[8] |
Human Development Index |
|
Labour force |
|
Labour force by occupation |
|
| Unemployment |
|
Average gross salary | €2,065, monthly (December, 2023) |
Average net salary | €1,598, monthly (December, 2023) |
Main industries | engineering, electronics, wood and articles of wood, textiles, information technology, telecommunications |
| External | |
| Exports | €14.4 billion (2018)[15] |
Export goods | Electrical equipment, wood and articles of wood, mineral products, agriculture products, mechanical appliances |
Main export partners |
|
| Imports | €16.2 billion (2018)[15] |
Import goods | Electrical equipment, transport equipment, agricultural products, mineral products, mechanical appliances |
Main import partners |
|
FDI stock |
|
Current account | $809 million (2017 est.)[5] |
Gross external debt |  $19.05 billion (31 December 2016 est.)[5] |
| Public finances | |
Government debt |
|
Budget balance |
|
| Revenues | 38.7% of GDP (2019)[16] |
| Expenses | 39.0% of GDP (2019)[16] |
| Economic aid |
|
Credit rating |
|
Foreign reserves |  $345 million (31 December 2017 est.)[5] |
All values, unless otherwise stated, are in US dollars. | |
The economy of Estonia is rated advanced by the World Bank, i.e. with high quality of life and advanced infrastructure relative to less industrialized nations. Estonia is a member of the European Union and eurozone.[20] The economy is heavily influenced by developments in the Finnish and Swedish economies.[21]
Historically, Estonia's economy was agricultural, moderinising significantly post-independence from Russia in 1918. There was a notable knowledge sector in Tartu and expanding industrial sector, exemplified by the Kreenholm Manufacturing Company. Western European markets were familiar with Estonian dairy, with the main trade partners being Germany and the UK; only 3% of commerce was with the neighbouring USSR. Estonia and Finland had a similar standard of living.[22] USSR's annexation of Estonia in 1940 and destruction during World War II crippled the economy. Post-war Sovietization continued, with the integration of Estonia's economy into the USSR's centrally-planned structure.
After Estonia restored its independence in 1991 and became a market economy, it emerged as a pioneer in the global economy. Estonia styled itself as a bridge between East and West, adopting significant economic reforms and technological innovations. In 1992, the country adopted the Estonian kroon as its currency, this stabilised the economy. In 1994, it became the first country in the world to adopt a flat tax, with a rate of 26% regardless of personal income. Estonia received more foreign investment, per person, in the late 1990s than any other country in Central and Eastern Europe. The country has been catching-up with the EU-15 - the richer European countries. Its GDP per capita grew from 35% of the EU-15 average in 1996 to 65% in 2007, similar to Central European countries.[23] Income per person was $49,000 in 2023 according to the IMF; this was between Poland and Portugal, but below Spain.[24] Because of its economic performance Estonia was termed one of the Baltic Tigers.
For Estonia, the 2007–2008 financial crisis was easier to weather, because its budget has consistently been kept balanced, and this meant public debt relative to GDP remained the lowest in Europe. The economy recovered in 2010.[25] In January 2011, Estonia adopted the euro, and became the first ex-Soviet republic to join the eurozone.[26] Estonia has demonstrated resilience, with a strong service sector, particularly in IT due to the Tiigrihüpe project, and advanced e-government services. Estonia's commitment to a circular economy, innovation and its success in maintaining a balanced budget, low public debt, and a competitive tax system have positioned it as a model of economic reform and growth in post-Soviet Europe.
- ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
- ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
- ^ "Population on 1 January". ec.europa.eu/eurostat. Eurostat. Retrieved 13 July 2020.
- ^ a b c d e f g h "Report for Selected Countries and Subjects: April 2023". imf.org. International Monetary Fund.
- ^ a b c d e f g "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 3 March 2019.
- ^ "At-risk-of-poverty rate". Statistics Estonia. Retrieved 21 February 2024.
- ^ "People at risk of poverty or social exclusion". ec.europa.eu/eurostat. Eurostat. Retrieved 15 August 2020.
- ^ "Gini coefficient of equivalised disposable income – EU-SILC survey". ec.europa.eu. World Bank. Retrieved 15 August 2020.
- ^ Nations, United. "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 12 October 2022.
- ^ Nations, United. "Inequality-adjusted HDI (IHDI)". hdr.undp.org. UNDP. Retrieved 12 October 2022.
- ^ "Labor force, total – Estonia". data.worldbank.org. World Bank. Retrieved 15 November 2019.
- ^ "Employment rate by sex, age group 20–64". ec.europa.eu/eurostat. Eurostat. Retrieved 16 June 2019.
- ^ "Unemployment by sex and age – monthly average". appsso.eurostat.ec.europa.eu/eurostat. Eurostat. Retrieved 4 October 2020.
- ^ "Unemployment rate by age group". data.oecd.org. OECD. Retrieved 7 September 2020.
- ^ a b c d "Last year, trade increased". Statistics Estonia. 18 April 2019. Archived from the original on 30 July 2020. Retrieved 18 April 2019.
- ^ a b c d e f "Euro area and EU27 government deficit both at 0.6% of GDP" (PDF). ec.europa.eu/eurostat. Eurostat. Retrieved 28 April 2020.
- ^ "Archived copy" (PDF). Archived (PDF) from the original on 25 December 2017. Retrieved 25 December 2017.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ "Archived copy" (PDF). Archived (PDF) from the original on 20 April 2017. Retrieved 25 December 2017.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ "Scope downgrades Estonia to A+ and revises the Outlook to Stable". Scope Ratings. Retrieved 19 April 2024.
- ^ "World Economic and Financial Surveys / World Economic Outlook". Database—WEO Groups and Aggregates Information. International Monetary Fund. April 2011. Retrieved 21 August 2012.
- ^ "Kuidas läheb Soome majandusel? | SEB". Archived from the original on 30 July 2020. Retrieved 4 November 2017.
- ^ Maddison, Angus (2006). The world economy. OECD Publishing. p. 185. ISBN 92-64-02261-9.
- ^ Cite error: The named reference
heritagewas invoked but never defined (see the help page). - ^ "GDP per capita, PPP (current international $)". World Bank. Retrieved 6 January 2020.
- ^ Cite error: The named reference
Kattel_and_Raudlawas invoked but never defined (see the help page). - ^ Cite error: The named reference
HSwas invoked but never defined (see the help page).