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/
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
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 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
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
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
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
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
Source: Ministry of Finance, November 2008
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
Source: Ministry of Finance, European Commission, Bank of Estonia, IMF
| 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/
