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Russia vs. Estonia

Economy

RussiaEstonia
Economy - overview

Russia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally planned economy towards a more market-based system. Both economic growth and reform have stalled in recent years, however, and Russia remains a predominantly statist economy with a high concentration of wealth in officials' hands. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy, transportation, banking, and defense-related sectors. The protection of property rights is still weak, and the state continues to interfere in the free operation of the private sector.

Russia is one of the world's leading producers of oil and natural gas, and is also a top exporter of metals such as steel and primary aluminum. Russia is heavily dependent on the movement of world commodity prices as reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices. The economy, which had averaged 7% growth during the 1998-2008 period as oil prices rose rapidly, has seen diminishing growth rates since then due to the exhaustion of Russia’s commodity-based growth model.

A combination of falling oil prices, international sanctions, and structural limitations pushed Russia into a deep recession in 2015, with GDP falling by close to 2.8%. The downturn continued through 2016, with GDP contracting another 0.2%, but was reversed in 2017 as world demand picked up. Government support for import substitution has increased recently in an effort to diversify the economy away from extractive industries.

Estonia, a member of the EU since 2004 and the euro zone since 2011, has a modern market-based economy and one of the higher per capita income levels in Central Europe and the Baltic region, but its economy is highly dependent on trade, leaving it vulnerable to external shocks. Estonia's successive governments have pursued a free market, pro-business economic agenda, and sound fiscal policies that have resulted in balanced budgets and the lowest debt-to-GDP ratio in the EU.

The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, Germany, and Russia. The economy’s 4.9% GDP growth in 2017 was the fastest in the past six years, leaving the Estonian economy in its best position since the financial crisis 10 years ago. For the first time in many years, labor productivity increased faster than labor costs in 2017. Inflation also rose in 2017 to 3.5% alongside increased global prices for food and energy, which make up a large share of Estonia’s consumption.

Estonia is challenged by a shortage of labor, both skilled and unskilled, although the government has amended its immigration law to allow easier hiring of highly qualified foreign workers, and wage growth that outpaces productivity gains. The government is also pursuing efforts to boost productivity growth with a focus on innovations that emphasize technology start-ups and e-commerce.

GDP (purchasing power parity)$3,968,180,000,000 (2019 est.)

$3,915,637,000,000 (2018 est.)

$3,818,780,000,000 (2017 est.)

note: data are in 2010 dollars
$48.987 billion (2019 est.)

$46.655 billion (2018 est.)

$44.708 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate1.34% (2019 est.)

2.54% (2018 est.)

1.83% (2017 est.)
5% (2019 est.)

4.36% (2018 est.)

5.51% (2017 est.)
GDP - per capita (PPP)$27,044 (2019 est.)

$26,668 (2018 est.)

$26,006 (2017 est.)

note: data are in 2010 dollars
$36,927 (2019 est.)

$35,293 (2018 est.)

$33,937 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 4.7% (2017 est.)

industry: 32.4% (2017 est.)

services: 62.3% (2017 est.)
agriculture: 2.8% (2017 est.)

industry: 29.2% (2017 est.)

services: 68.1% (2017 est.)
Population below poverty line12.6% (2018 est.)21.7% (2018 est.)
Household income or consumption by percentage sharelowest 10%: 2.3%

highest 10%: 32.2% (2012 est.)
lowest 10%: 2.3%

highest 10%: 25.6% (2015)
Inflation rate (consumer prices)4.4% (2019 est.)

2.8% (2018 est.)

3.7% (2017 est.)
2.2% (2019 est.)

3.4% (2018 est.)

3.4% (2017 est.)
Labor force69.923 million (2020 est.)648,000 (2020 est.)
Labor force - by occupationagriculture: 9.4%

industry: 27.6%

services: 63% (2016 est.)
agriculture: 2.7%

industry: 20.5%

services: 76.8% (2017 est.)
Unemployment rate4.6% (2019 est.)

4.8% (2018 est.)
4.94% (2019 est.)

4.73% (2018 est.)
Distribution of family income - Gini index37.5 (2018 est.)

41.9 (2013)
30.4 (2017 est.)

35.6 (2014)
Budgetrevenues: 258.6 billion (2017 est.)

expenditures: 281.4 billion (2017 est.)
revenues: 10.37 billion (2017 est.)

expenditures: 10.44 billion (2017 est.)
Industriescomplete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine building from rolling mills to high-performance aircraft and space vehicles; defense industries (including radar, missile production, advanced electronic components), shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; electric power generating and transmitting equipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicraftsfood, engineering, electronics, wood and wood products, textiles; information technology, telecommunications
Industrial production growth rate-1% (2017 est.)9.5% (2017 est.)
Agriculture - productswheat, sugar beet, milk, potatoes, barley, sunflower seed, maize, poultry, oats, soybeanswheat, milk, barley, rapeseed, rye, oats, peas, potatoes, pork, triticale
Exports$551.128 billion (2019 est.)

$564.314 billion (2018 est.)

$534.657 billion (2017 est.)
$23.95 billion (2019 est.)

$22.546 billion (2018 est.)

$21.677 billion (2017 est.)
Exports - commoditiescrude petroleum, refined petroleum, natural gas, coal, wheat, iron (2019)broadcasting equipment, refined petroleum, coal tar oil, cars, prefabricated buildings (2019)
Exports - partnersChina 14%, Netherlands 10%, Belarus 5%, Germany 5% (2019)Finland 13%, Sweden 9%, Latvia 8%, Russia 8%, United States 7%, Lithuania 6%, Germany 6% (2019)
Imports$366.919 billion (2019 est.)

$355.022 billion (2018 est.)

$345.926 billion (2017 est.)
$23.323 billion (2019 est.)

$22.485 billion (2018 est.)

$21.273 billion (2017 est.)
Imports - commoditiescars and vehicle parts, packaged medicines, broadcasting equipment, aircraft, computers (2019)cars, refined petroleum, coal tar oil, broadcasting equipment, packaged medicines (2019)
Imports - partnersChina 20%, Germany 13%, Belarus 6% (2019)Russia 12%, Germany 10%, Finland 9%, Lithuania 7%, Latvia 7%, Sweden 6%, Poland 6%, China 6% (2019)
Debt - external$479.844 billion (2019 est.)

$484.355 billion (2018 est.)
$23.944 billion (2019 est.)

$23.607 billion (2018 est.)
Exchange ratesRussian rubles (RUB) per US dollar -

73.7569 (2020 est.)

63.66754 (2019 est.)

66.2 (2018 est.)

60.938 (2014 est.)

38.378 (2013 est.)
euros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt15.5% of GDP (2017 est.)

16.1% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment, debt instruments for the social funds are not sold at public auctions
9% of GDP (2017 est.)

9.4% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities, including sub-sectors of central government, state government, local government, and social security funds
Reserves of foreign exchange and gold$432.7 billion (31 December 2017 est.)

$377.7 billion (31 December 2016 est.)
$345 million (31 December 2017 est.)

$352.2 million (31 December 2016 est.)
Current Account Balance$65.311 billion (2019 est.)

$115.68 billion (2018 est.)
$616 million (2019 est.)

$280 million (2018 est.)
GDP (official exchange rate)$1,702,361,000,000 (2019 est.)$31.461 billion (2019 est.)
Taxes and other revenues16.4% (of GDP) (2017 est.)39.9% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-1.4% (of GDP) (2017 est.)-0.3% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 15.2%

male: 14.8%

female: 15.6% (2019 est.)
total: 11.1%

male: 10.5%

female: 11.7% (2019 est.)
GDP - composition, by end usehousehold consumption: 52.4% (2017 est.)

government consumption: 18% (2017 est.)

investment in fixed capital: 21.6% (2017 est.)

investment in inventories: 2.3% (2017 est.)

exports of goods and services: 26.2% (2017 est.)

imports of goods and services: -20.6% (2017 est.)
household consumption: 50.3% (2017 est.)

government consumption: 20.4% (2017 est.)

investment in fixed capital: 24% (2017 est.)

investment in inventories: 2.2% (2017 est.)

exports of goods and services: 77.2% (2017 est.)

imports of goods and services: -74% (2017 est.)
Gross national saving27.6% of GDP (2019 est.)

30% of GDP (2018 est.)

25.7% of GDP (2017 est.)
29.1% of GDP (2019 est.)

28.4% of GDP (2018 est.)

28.2% of GDP (2017 est.)

Source: CIA Factbook