Estonia Economy Profile 2009

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 pro-market reforms. Tallinn's priority has been to sustain high growth rates - on average 8% per year from 2003 to 2007. 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 adopting the euro, but has repeatedly postponed its target date. Estonia's economy slowed down markedly and fell sharply 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 (purchasing power parity)

$27.41 billion (2008 est.)
$28.43 billion (2007 est.)
$26.74 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$23.23 billion (2008 est.)

GDP - real growth rate

-3.6% (2008 est.)
6.3% (2007 est.)
10.4% (2006 est.)

GDP - per capita (PPP)

$21,000 (2008 est.)
$21,600 (2007 est.)
$20,200 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2.6%
industry: 29%
services: 68.4% (2008 est.)

Population below poverty line

5% (2003)

Labor force

693,000 (2008 est.)

Labor force - by occupation

agriculture: 4.7%
industry: 33.7%
services: 61.6% (2007)

Unemployment rate

5.7% (30 September 2008 est.)
4.7% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2.7%
highest 10%: 27.7% (2004)

Distribution of family income - Gini index

34 (2008)
37 (1999)

Investment (gross fixed)

28.4% of GDP (2008 est.)

Budget

revenues: $8.798 billion
expenditures: $9.488 billion (2008 est.)

Public debt

4.8% of GDP (2008 est.)
5.4% of GDP (2004 est.)

Inflation rate (consumer prices)

10.4% (2008 est.)
6.6% (2007 est.)

Commercial bank prime lending rate

NA% (31 December 2008)
6.46% (31 December 2007)

Stock of money

$6.106 billion (31 December 2008)
$7.158 billion (31 December 2007)

Stock of quasi money

$5.473 billion (31 December 2008)
$4.253 billion (31 December 2007)

Stock of domestic credit

$22.02 billion (31 December 2008)
$21.35 billion (31 December 2007)

Industries

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

Industrial production growth rate

-4.8% (2008 est.)

Electricity - production

12.19 billion kWh (2007)

Electricity - production by source

fossil fuel: 99.8%
hydro: 0.1%
nuclear: 0%
other: 0.2% (2001)

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 - imports

28,170 bbl/day (2005)

Oil - exports

7,000 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.)

Current Account Balance

-$2.186 billion (2008 est.)
-$3.771 billion (2007 est.)

Agriculture - products

potatoes, vegetables; livestock and dairy products; fish

Exports

$12.58 billion (2008 est.)
$11.08 billion (2007 est.)

Exports - commodities

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

Exports - partners

Finland 18.3%, Sweden 13.8%, Russia 10.3%, Latvia 10%, Lithuania 5.7%, Germany 5.1%, US 4.8% (2008)

Imports

$15.29 billion (2008 est.)
$14.75 billion (2007 est.)

Imports - commodities

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

Imports - partners

Finland 14.2%, Germany 13.3%, Sweden 10%, Lithuania 8.9%, Latvia 8.9%, Russia 7.4%, Poland 4.6% (2008)

Reserves of foreign exchange and gold

$3.857 billion (31 December 2008 est.)
$3.27 billion (31 December 2007 est.)

Debt - external

$26.82 billion (31 December 2008)
$25.25 billion (31 December 2007)

Stock of direct foreign investment - at home

$18.62 billion (31 December 2008 est.)
$16.59 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$6.856 billion (31 December 2008 est.)
$5.873 billion (31 December 2007 est.)

Market value of publicly traded shares

$1.951 billion (31 December 2008)
$6.037 billion (31 December 2007)
$5.963 billion (31 December 2006)

Economic aid - recipient

$135.5 million (2004)

Currency (code)

Estonian kroon (EEK)

Currency (code)

EEK

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

calendar year