An Overview of the Economy
Of the three Baltic States Estonia and Latvia are the favoured,
with Estonia said to be the most prosperous. Estonia's economic
growth slowed during the Asian and Russian Economic crises of 1998,
but the country recovered well. GDP growth is high especially in
the capital city Tallinn. The unemployment rate dropped to 5.2% in
2007, down from 14% in 2000. Inflation is currently high as the
banks struggle to contain the rocketing house prices of 2007.
Estonia has a modern market-based economy with strong ties to
the West. It is a WTO and EU member and pegs its currency to the
euro. The economy benefits from strong electronics and
telecommunications sectors and is greatly influenced by
developments in Finland, Sweden, and Germany, three major trading
partners. Its physical and cultural proximity to Denmark, its
attractiveness to foreign investors and the high quality of its
institutions, should ensure that strong economic growth
continues.
| statistics |
|
| GPD (PPP) (IMF) (US$Billions) |
28.3 |
| GDP (PPP) (CIA) (US$Billions) |
29.4 |
| GDP Growth (IMF) (%) |
7.1% |
| GDP Growth (CIA) (%) |
7.1% |
| GDP Per Capita (PPP) (IMF) (US$) |
21,094 |
| GDP Per Capita (PPP) (CIA) (US$) |
21,100 |
| GDP by Sector (%) |
Agriculture: 3%
Services: 68.5%
Industry: 28.5% |
| Inflation (%) |
6.6% |
| Population Below the Poverty Line (%) |
5% |
| Labour Force (Millions) |
0.7 |
| Labour Force by Occupation (%) |
Agriculture: 11%
Services: 69%
Industry: 20% |
| Unemployment (%) |
4.7% |
| Main Industries |
Engineering, electronics, wood and
wood products, textile, information technology,
telecommunications. |
Sources: CIA World Factbook, IMF
GDP
| economic indicators |
2003 |
2004 |
2005 |
2006 |
2007 |
| GDP (US$Billions) |
9.8 |
11.9 |
13.9 |
16.6 |
21.3 |
| GDP Growth (%) |
4.7% |
6.0% |
10.5% |
11.4% |
7.1% |
| GDP Per Capita (US$) |
7,238 |
8,809 |
10,343 |
12,352 |
15,850 |
| GDP Per Capita (PPP) (US$) |
13,244 |
14,723 |
16,659 |
19,148 |
21,100 |
| Inflation (%) |
1.3% |
3.0% |
4.1% |
4.4% |
6.3% |
| Unemployment (%) |
10.1% |
9.6% |
7.9% |
4.5% |
4.7% |
Foreign-Exchange
& Gold Reserves (US$Billions) |
1.4 |
1.5 |
1.9 |
2.3 |
3.3 |
| Mobile Phone Users |
881,000 |
881,000 |
1,445,000 |
1,445,000 |
1,659,000 |
| Internet Users |
444,000 |
444,000 |
690,000 |
690,000 |
760,000 |
Sources: CIA World Factbook, IMF
Major Exports & Imports
Estonia has the strongest economy of the Baltic States based on
expanding electronics and telecommunications industries and close
trading links with Finland, Sweden and Russia.
major exports 2007
Machinery and equipment, textiles and products, wood and paper,
food products, furniture.
major imports 2007
Machinery and equipment, chemical products, textiles and
products, foodstuffs, transportation equipment.
| export partners |
% of total |
| Finland |
18.2% |
| Sweden |
12.2% |
| Latvia |
9.1% |
| Russia |
7.9.% |
| US |
6.6% |
| import partners |
% of total |
| Finland |
18.4% |
| Russia |
12.9% |
| Germany |
12.3% |
| Sweden |
9.2% |
| Lithuania |
6.4% |
| Latvia |
5.8% |
Source: CIA World Factbook
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