Estonia Economy Profile 2008

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. 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. In 2007, however, a large current account deficit and rising inflation put pressure on Estonia's currency, which is pegged to the euro, highlighting the need for growth in export-generating industries.

GDP (purchasing power parity)

$29.35 billion (2007 est.)

GDP (official exchange rate)

$21.2 billion (2007 est.)

GDP - real growth rate

7.3% (2007 est.)

GDP - per capita (PPP)

$21,800 (2007 est.)

GDP - composition by sector

agriculture: 2.9%
industry: 28.9%
services: 68.2% (2007 est.)

Population below poverty line

5% (2003)

Household income or consumption by percentage share

lowest 10%: 2.5%
highest 10%: 27.6% (2003)

Inflation rate (consumer prices)

6.3% (2007 est.)

Investment (gross fixed)

33.3% of GDP (2007 est.)

Labor force

688,000 (2007 est.)

Labor force - by occupation

agriculture: 11%
industry: 20%
services: 69% (1999 est.)

Unemployment rate

5.2% (2007 est.)

Distribution of family income - Gini index

34 (2005)

Budget

revenues: $7.671 billion
expenditures: $7.015 billion (2007 est.)

Public debt

3.8% of GDP (2007 est.)

Industries

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

Industrial production growth rate

6.1% (2007 est.)

Electricity - production

9.599 billion kWh (2005)

Electricity - consumption

6.888 billion kWh (2005)

Electricity - exports

1.953 billion kWh (2005)

Electricity - imports

345 million kWh (2005)

Oil - production

6,930 bbl/day (2005 est.)

Oil - consumption

29,000 bbl/day (2005 est.)

Oil - imports

54,000 bbl/day (2004)

Oil - exports

3,958 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

1.458 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

1.458 billion cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$3.092 billion (2007 est.)

Agriculture - products

potatoes, vegetables; livestock and dairy products; fish

Exports

$11.31 billion f.o.b. (2007 est.)

Exports - commodities

machinery and equipment 33%, wood and paper 15%, textiles 14%, food products 8%, furniture 7%, metals, chemical products (2001)

Exports - partners

Finland 18.2%, Sweden 12.2%, Latvia 9.1%, Russia 7.9%, US 6.6%, Germany 5%, Lithuania 4.8%, Gibraltar 4.5% (2006)

Imports

$14.71 billion f.o.b. (2007 est.)

Imports - commodities

machinery and equipment 33.5%, chemical products 11.6%, textiles 10.3%, foodstuffs 9.4%, transportation equipment 8.9% (2001)

Imports - partners

Finland 18.4%, Russia 12.9%, Germany 12.3%, Sweden 9.2%, Lithuania 6.4%, Latvia 5.8% (2006)

Reserves of foreign exchange and gold

$3.605 billion (31 December 2007 est.)

Debt - external

$20.24 billion (30 June 2007)

Stock of direct foreign investment - at home

$16.32 billion (2006 est.)

Stock of direct foreign investment - abroad

$3.557 billion (2006 est.)

Market value of publicly traded shares

$5.963 billion (2006)

Economic aid - recipient

$135.5 million (2004)

Currency (code)

Estonian kroon (EEK)

Exchange rates

krooni per US dollar - 11.535 (2007), 12.473 (2006), 12.584 (2005), 12.596 (2004), 13.856 (2003)
note: the krooni is pegged to the euro

Fiscal year

calendar year