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

 

Key Facts

  • Currency: from 1 January 2011 Estonia is member of eurozone and the currency in Estonia is euro.
  • Estonia became the OECD‘s 34th member country on 9 December 2010.
  • Tax system: 21% flat income tax, reinvested corporate profit is tax free; 20% VAT

International Credit Ratings

  • Moody’s: A1, outlook stable
  • Standard & Poor’s: AA-/A-1+, outlook stable
  • Fitch: A+, outlook stable

Key Indicators

Key Indicators 2006 2007 2008 2009 2010 2011 2012
Population (million) 1.35 1.35 1.34* 1.34 1.34 1.34 1.29*
GDP at current prices (billion EUR) 13.4 16.1 16.2 13.8 14.3 16.0 17.0
Real growth of GDP (%) 10.1 7.5 -4.2 -14.1 3.3 8.3 3.2
GDP per capita at current prices (EUR) 9 967 11 977 12 110 10 268 10 687 11 905 13 172
GDP per capita (PPS) (EU-27=100) 66 70 69 64 64 67
Annual FDI (million EUR) 1 431.9 1 985.0 1 181.8 1 324.5 1 207.3 185.0 1 144.4
FDI position(million EUR) 9 644 11 386 11 775 11 670 12 495 12 928 14 269
FDI position per capita(EUR) 7 144 8 434 8 787 8 709 9 325 9 648 11 061
Inflation (%) 4.4 6.6 10.4 -0.1 3.0 5.0 3.9
Unemployment rate** (%) 5.9 4.7 5.5 13.8 16.9 12.5 10.2
Average monthly wage (EUR) 601 725 825 784 792 839
Current account balance (% of GDP) -15.3 -15.9 -9.1 3.4 2.9 2.1 -1.2
state budget (% of GDP) 2.5 2.4 -2.9 -2.0 0.3 1.1
Export (billion EUR)*** 7 719 8 033 8 470 6 487 8 743 12 041 12 550
Import (billion EUR)*** 10 711 11 439 10 896 7 270 9 268 12 721 13 762
Trade balance (billion EUR)*** -2 992 -3 406 -2 426 -783 -525 -707 -1 212
Total gov.expenditures (% of GDP) 33.6 34.0 39.5 45.2 40.6 38.2

* Based on the 2012 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

GDP by Main Fields of Economic Activity (as a % of total GDP)

Field of Activity 2006 2007 2008 2009 2010 2011 2012
Manufacturing 16.5 16.0 15.7 14.3 16.0 17.3 16.0
Wholesale and retail 14.5 13.9 13.0 11.7 11.7 11.2 11.2
Real estate activities 10.4 10.3 10.4 11.3 10.4 9.8 10.1
Transport and storage 8.4 7.9 7.8 7.6 8.5 8.7 8.5
Construction 9.9 10.7 9.8 7.2 5.9 6.4 7.4
Public adm.,defence, social security 5.2 5.5 6.4 7.9 7.3 6.8 6.7
Information and communication 4.3 4.4 4.8 5.3 5.0 5.1 5.3
Education 4.3 4.2 4.8 5.5 5.1 4.7 4.6
Professional, scientific and

technical activities

4.2 4.4 4.7 5.1 4.8 4.6 4.6
Admin. and support service 3.6 3.5 3.7 3.9 4.1 4.4 4.4
Electricity, gas supply 2.6 2.5 2.5 3.5 4.1 3.7 3.8
Human health and social work 2.9 3.1 3.5 4.0 3.8 3.7 3.6

Source: Statistical Office of Estonia

Main Trade Partners in 2012, as a % of total trade

figures shown in special trade system

Country Exports Country Imports
1. Sweden 15.9 1. Finland 14.5
2. Finland 14.6 2. Germany 10.3
3. Russia 12.1 3. Sweden 10.2
4. Latvia 8.8 4. Latvia 9.5
5. Lithuania 5.4 5. Lithuania 8.6
6. USA 4.7 6. Russia 6.8
7. Germany 4.5 7. Poland 6.2
8. Norway 3.4 8. United Kingdom 3.8
9. Netherlands 2.4 9. Netherlands 3.8
10. Denmark 2.4 10. China 3.5
Others 25.8 Others 22.8

Main Export and Import Articles in 2012, as a % of total trade

Main Commodity Groups Exports Main Commodity Groups Imports
Machinery and appliances 28.6 Machinery and appliances 28.6
Mineral products 14.9 Mineral products 15.5
Agr. products, food preparations 9.2 Agr. products, food preparations 9.9
Metals and products thereof 8.3 Transport equipment 9.2
Wood and articles of wood 7.4 Chemical products 8.2
Misc. manufactured articles 6.6 Metals and products thereof 7.8
Transport equipment 5.1 Articles of plastics and rubber 4.9
Chemical products 5.2 Textile products 4.1
Articles of plastics and rubber 3.1 Wood and articles of wood 2.4
Textiles and textile articles 2.8 Misc. manufactured articles 2.0
Paper and articles of paper 2.5 Paper and articles of paper 1.7
Others 6.3 Others 6

Source: Statistical Office of Estonia

export_imports_2005-2012

According to Statistics Estonia, in 2012 the exports of goods from Estonia at current prices totalled 12.6 billion euros and imports 13.8 billion euros. In 2012 exports of goods increased by 4% and imports by 9% compared to 2011.

In 2012 73% of Estonia’s total trade was with EU member countries. Estonia’s main trade partners are neighbouring countries  Finland, Sweden, Russia and Latvia.

In 2012 the value of goods exported from Estonia to the EU27 countries was 8.3 billion euros, accounting for 66% of Estonia’s total exports.

Imports from the EU27 countries to Estonia totalled 11.0 billion euros with the share of 80% of Estonia’s total imports in 2012.

 

Direct Investment Position in Estonia by Countries

 

as of 31 December 2012

Country Million EUR % of total
EU27 11 641.2 83.3
Euro-zone17 6 422.1 46.5
CIS 732.1 4.7
1. Sweden 3 940.7 27.6
2. Finland 3 326.7 23.3
3. Netherlands 1 477.5 10.4
4. Norway 675.2 4.7
5. Russia 649.6 4.6
6. Lithuania 440.5 3.1
7. Cyprus 410.3 2.9
8. Denmark 331.1 2.3
9. USA 329.5 2.3
10. Germany 297.6 2.1
Others 2 389.9 16.7
Total 14 268.6 100.0

Source: Bank of Estonia

Estonia’s Direct Investment Position abroad by Countries

as of 31 December 2012

Country million EUR % of total
EU27 3 614.4 82.3
Euro-zone17 1 836.3 41.8
CIS 585.7 13.3
1. Cyprus 1 258.7 28.7
2. Lithuania 867.8 19.8
3. Latvia 755.3 17.2
4. Russia 252.4 5.8
5. Finland 240.5 5.5
6. Ukraine 238.6 5.4
7. Netherlands 126.6 2.9
8. Belarus 82.6 1.9
9. Italy 81.0 1.8
10. USA 74.9 1.7
Others 411.1 9.3
Total 4 389.5 100.0

Source: Bank of Estonia

Foreign direct investment in Estonia totalled 14.3 billion euros at the end of 2012. The largest direct investment came from Sweden (27.6%) and Finland (23.3%).

The most preferred fields of activity for foreign direct investment in Estonia were financial and insurance activities (24.4%), manufacturing (16.4%) and real estate activities (15.5%).

Estonian residents’ investments abroad totalled 4.4 billion euros at the end of 2012. Cyprus received 29% of the direct investments, Lithuania 20%, and Latvia 17%.

The most preferred fields of activity were transport and storage (28%), professional, scientific and technical activities (19.7%), and financial and insurance activities (16.9%).

Telecommunications and IT

  • 77% of population aged 16 to 74 are Internet users (2011, Statistics Estonia).
  • 71% of households have access to the Internet at home (2011, Statistics Estonia).
  • All Estonian schools are connected to the Internet.
  • All Estonian towns and villages are covered by the network of public Internet access points.
  • There are more than 1 100 free wireless Internet zones around the country. More information: www.wifi.ee
  • Incomes can be declared to the Tax and Customs Board via Internet. In 2012, the percentage of electronic tax declarations was 94.
  • The Government has changed Cabinet meetings to paperless sessions using a web-based document system
  • All of Estonia is covered with digital mobile phone networks
  • There are more mobile phone contracts than residents – 139 per 100 people

With its policies and innovative initiatives the Estonian Government is helping companies make the information technology sector one of the fastest growing in the country. The World Economic Forum’s Global Information Technology Report 2012 – The Networked Readiness Index, also indicates a strong Estonian standing in government and the community readiness to participate in and benefit from ICT developments: the study ranks Estonia 24th out of 142 countries thanks to its regulatory framework for ICT, making Estonia the leader among the Central and Eastern European countries.

Source:  Estonia.eu

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