Estonia in general

Official name: Republic of Estonia

Head of State: President since October 2006, Mr Toomas Hendrik Ilves

Constitution: passed on 28. June 1992 (4.)

Government: Parliamentary Republic, single chamber Parliament (Riigikogu) of 101 members

Currency: Eesti Kroon (EEK); 1 kroon = 100 sents. Pegged to euro under currency board arrangement at rate EUR = 15.6466 EEK

National Day: Independence Day, February 24th

 

Administrative division

Capital: Tallinn (402,500)

Other cities: Tartu (101,000), Narva (68,000), Kohtla-Järve (59,000), Pärnu (45,000)Estonia is devided into 15 counties, 181 rural municipalities and 47 towns

 

Geography

Area: 45 227 square km

Distance from Tallinn: Helsinki 85 km, Riga 307 km, St Petersburg 395 km, Stockholm 405 km, Vilnius 605 km

Flight times: Helsinki 35 min, Stockholm 1 h, Copenhagen 1 h 30 min,Moskow 1 h 40 min, Amsterdam 2 h 20 min, London 2 h 45 min

Time Zone: GMT + 2 hours

Average Temperatures: -6 C (February), +17 C (July)

Major Natural Resources: Timber, oil shale, phosphorite, peat, limestone, dolomite

 

Population

Population: 1.34 million; in towns 70%, in rural municipalities 30%

Employed: 655 thousand

Ethnic groups: Estonians 68.6%, Russians 25.6%, Ukrainians 2.1%

Language: Estonian. Other languages such as English, Russian and Finnish are also widely spoken

Main Religion: Lutheran

 

Economy 2007

GDP per capita: EUR 11,380

GDP growth: 6.3%

FDI stock: EUR 11.3 billion (31.12.2007)

FDI into Estonia: EUR 1.8 billion (in 2007)

Exports: EUR 8 billion

Imports: EUR 11.3 billion

Inflation (CPI): 6.6%

Unemployment rate: 4.7%

Average monthly gross wages: EUR 724

 

Key Facts

National currency: the kroon, EEK (100 sents = 1 kroon)

Monetary system: modified currency board

Currency peg: 1 EUR = 15.65 EEK

Currency peg and currency board fixed by law since
June 1992 (originally to the German Mark)

Tax system: 21% flat income tax, reinvested corporate profit is tax free; 18% VAT

 

International Credit Ratings

Moody’s: A1, outlook negative

Standard & Poor’s: A, outlook negative

Fitch: A-, outlook negative

Key Indicators (in EUR)
Key Indicators
2001
2002
2003
2004
2005
2006
2007
2008
Population (million)
1.37*
1.36*
1.36*
1.35*
1.35*
1.36
1.35
1.34*
GDP at current prices (billion)
6.9
7.7
8.7
9.6
11.0
13.0
15.2
 
Real growth of GDP (%)
7.7
7.8
7.1
7.5
9.2
10.4
6.3
-3.6
GDP per capita at current prices
5 047
5 702
6 390
7 148
8 213
9 634
11 308
 
GDP at market prices, PPS per capita
9 100
10 200
11 300
12 300
14 100
16 100
17 800
 
Annual FDI (mln )
602.7
306.8
822.2
775.1
2 254.5
1 341.0
1 815.3
 
FDI stock, as of 31 December (mln)
3 573
4 035
5 553
7 378
10 748
12 390
15 274
 
FDI stock per capita, as of 31 Dec
2 625
2 975
4 110
5 477
7 682
9 214
11 314
 
Consumer price index comp to prev year (%)
5.8
3.6
1.3
3.0
4.1
4.4
6.6
10.4
Unemployment rate** (%)
12.6
10.3
10.0
9.7
7.9
5.9
4.7
5.5
Average monthly wage
352
393
430
466
516
601
724
819
Current account balance (% of GDP)
-5.2
-10.6
-11.3
-11.7
-10.0
-16.7
-18.1
 
Deficit (-)/Surplus of state budget
 (% of GDP)
0.6
1.1
2.4
1.7
1.5
2.9
2.7
 
Export (billion)***
3.698
3.642
4.003
4.769
6.183
7.639
8.021
8.452
Import (billion)***
4.798
5.079
5.715
6.703
8.204
10.564
11.318
10.870
Trade balance (billion)***
-1.100
-1.437
-1.712
-1.934
-2.021
-2.925
-3.297
-2.418
Total gov expenditures (% of GDP)
33.6
34.3
33.3
34.9
35.5
35.3
36.6
 
* Based on the 2000 Population Census
** Unemployed/labour force according to ILO methodology;
*** Trade figures shown in special trade system
(e) Estimated value

Sources: Population Register, Bank of Estonia, Ministry of Finance, Statistical Office of Estonia, Eurostat

 

Field of Activity
2000
2001
2002
2003
2004
2005
2006
2007
Real estate, renting, business services
16.9
17.5
17.2
16.7
16.6
16.5
17.1
17.2
Manufacturing
16.7
17.0
17.4
17.9
18.4
18.5
14.7
14.4
Wholesale and retail trade
12.8
12.9
13.0
13.0
12.7
13.1
13.3
13.1
Transport, storage and communication
14.9
15.1
14.5
14.4
14.0
13.7
10.6
10.2
Construction
5.7
5.7
6.4
6.4
6.7
7.1
7.0
6.8
Public administration and defence;
 compulsory social security
5.5
5.2
5.1
5.2
5.1
4.7
4.5
4.7
Education
5.1
5.0
5.0
5.1
4.9
4.7
3.7
3.7
Financial intermediation
3.9
3.7
3.9
3.8
4.1
3.9
3.3
3.5
Agriculture and hunting
3.0
3.0
2.6
2.5
2.6
2.4
2.6
1.5
Source: Statistical Office of Estonia
Due to the accession with the European Union, the methodology of macroeconomic statistics changed. The changes concerned the calculation methodology of imputed rent and consumption of fixed capital, and changed also the level of gross domestic product and gross national income in the period 1993–2003.
Main Trade Partners in 2008
as a % of total trade, figures shown in special trade system
Country
Exports
Country
Imports
1. Finland
18.0
1. Finland
14.0
2. Sweden
14.0
2. Germany
13.0
3. Russia
11.0
3. Sweden
10.0
4. Latvia
10.0
4. Latvia
9.0
5. Lithuania
6.0
5. Lithuania
9.0
6. Germany
5.0
6. Russia
8.0
7. USA
5.0
7. Poland
5.0
8. Norway
3.0
8. Netherlands
3.0
9. Denmark
3.0
9. Belarus
3.0
10. Great Britain
3.0
10. Great Britain
3.0
Others
22.0
Others
23.0
Main Exports and Imports in 2008 (as a % of total trade)
Main Commodity Groups
Exports
Main Commodity Groups
Imports
Machinery and appliances
22.0
Machinery and appliances
22.0
Mineral products
12.0
Mineral products
16.0
Base metals,articles of base metals
12.0
Transport equipment
11.0
Wood and articles of wood
9.0
Base metals, articles of base metals
11.0
Agricultural products, food preparations
9.0
Agricultural products,food preparations
11.0
Transport equipment
8.0
Chemical products
8.0
Miscellaneous man. articles
7.0
Textile products
5.0
Chemical products
5.0
Articles of plastics and rubber
5.0
Textiles and textile articles
4.0
Wood and articles of wood
2.0
Articles of plastics and rubber
3.0
Miscellaneous man. articles
2.0
Paper and articles of paper
3.0
Paper and articles of paper
2.0
Others
6.0
Others
5.0
Source: Statistical Office of Estonia
 
Direct Investment Position in Estonia
by Countries as of 30 June 2008
Country
Million EUR
% of total
1. Sweden
4 584.8
39.0
2. Finland
2 809.9
23.9
3. Netherlands
864.9
7.4
4. Denmark
462.0
3.9
5. Russia
325.4
2.8
6. Norway
294.5
2.5
7. Germany
285.3
2.4
8. Cyprus
261.6
2.2
9. Great Britain
245.3
2.1
10. Luxembourg
218.5
1.9
Others
1 409.5
11.9
Total
11 761.7
100.0
Source: Bank of Estonia
 
Estonia’s Direct Investment Position abroad
by Countries as of 30 June 2008
Country
million EUR
% of total
1. Latvia
1 478.0
33.8
2. Lithuania
1 239.1
28.3
3. Cyprus
416.5
9.5
4. Russia
240.4
5.5
5. Finland
174.4
4.0
6. Ukraine
155.8
3.6
7. Italy
105.4
2.4
8. Poland
90.9
2.1
9. Belarus
56.2
1.3
10. Great Britain
53.6
1.2
Others
364.8
8.3
Total
4 375.0
100.0
Source: Bank of Estonia
 
Telecommunications and IT
 
12/2004
12/2005
12/2006
12/2007
Telephone main (fixed) lines per 100 inh.
32.9
32.8
33.7
35.7
Share of digital lines (%)
83
83
85
86
Number of mob. phone subscribers per
100 inhabitants
93
107
123
147.6
Broadband connections per 100 inhabitants (%)
13
17
21
21
Nu. of households connected to broadband
 per 100 homes
28
36
44
44
Sources: National Communication BoardEconomic Development Perspectives

Growth and associated factors 2006-2012
Main economic indicators
2006
2007
2008*
2009*
2010*
2011*
2012*
GDP real growth (%)
10.4
6.3
-2.2
-3.5
2.6
4.8
5.0
GDP (current prices, billion EUR)
13.0
15.2
16.2
16.4
17.3
18.7
20.3
GDP deflator (%)
7.0
9.6
8.8
4.4
3.0
3.3
3.4
Consumer price index (%)
4.4
6.6
10.4
4.1
2.8
3.0
3.2
Employment (15–74 y., thousands)
646.3
655.4
653.4
631.5
627.1
628.4
628.4
Employment growth (%)
6.4
1.4
-0.3
-3.4
-0.7
0.2
0.0
Productivity growth (per employee, %)
3.7
4.9
-2.0
-0.2
3.3
4.6
5.0
Unemployment rate (ILO)
5.9
4.7
5.3
8.6
9.3
9.0
8.8
Average wage (EUR)
601
724
831
866
907
980
1 061
Wage real growth (%)
11.6
13.1
3.9
0.0
1.9
4.9
4.9
Current account (% of GDP)
-16.7
-18.1
-12.1
-7.2
-7.1
-6.9
-6.7
* Forecast;
Source:
Ministry of Finance, November 2008
A Comparison of Economic Forecasts from Various Institutions 2008-2009
 
Economic growth, %
Consumer price index, %
Current account,
% of GDP
 
2008
2009
2008
2009
2008
2009
IMF
-1.5
0.5
10.2
5.1
-10.8
-8.7
European Commission
-2.4
-4.7
10.6*
3.2*
-10.1
-5.7
Bank of Estonia
-3.5
-5.5
10.6*
2.0*
-11.1
-6.5
Ministry of Finance
-2.2
-3.5
10.6*
6.2*
-12.1
-7.2
* Harmonised consumer price index
Source:
Ministry of Finance, European Commission, Bank of Estonia, IMF
Index of Economic Freedom 2008

1. Hong Kong
10. United Kingdom
2. Singapore 11. Denmark
3. Ireland 12. ESTONIA
4. Australia
13. The Netherlands
5. United States
16. Finland
6. New Zealand
26. Lithuania
7. Canada
27. Sweden
8. Chile
34. Norway
9. Switzerland
38. Latvia

Source: Wall Street Journal; The Heritage Foundation

Sources:
Estonian Investment and Trade Agency www.investinestonia.com
Estonian Ministry of Foreign Affairs http://www.vm.ee/

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