Economy of Estonia

The Estonian economy is an advanced economy and a member of the European Union and of the eurozone.[13] The Estonian economy is heavily influenced by developments in the Finnish and Swedish economies.[14]

Economy of Estonia
Tln1
Tornimäe business area in Tallinn
CurrencyEuro (EUR)[1]
Calendar year
Trade organisations
EU, WTO and OECD
Statistics
GDPIncrease $30.312 billion (nominal, 2018)[2]
Increase $44.955 billion (PPP, 2018)[2]
GDP rank101st (nominal, 2018)
111th (PPP, 2018)
GDP growth
3.4% (2016) 4.8% (2017)
3.8% (2018) 3.0% (2019e)[2][3]
GDP per capita
Increase $22,989 (nominal, 2018)[2]
Increase $34,095 (PPP, 2018)[2]
GDP per capita rank
37th (nominal, 2018)
39th (PPP, 2018)
GDP by sector
agriculture: 2.8%
industry: 29.2%
services: 68.1% (2017 est.)[3]
3.000% (2019f est.)[2]
3.412% (2018)[2]
3.651% (2017)[2]
Population below poverty line
21.1% – income below €468/month (2016)[4]
21.8% (2013)[5]
Positive decrease 31.6 medium (2017, Eurostat)[6]
Increase 0.871 very high (2017) (30th)
Labour force
670,200 (2017 est.)[3]
Employment: Increase 79.5% (2018)[7]
Labour force by occupation
agriculture: 2.7%
industry: 20.5%
services: 76.8% (2017 est.)[3]
UnemploymentPositive decrease 5.4% (2018)[2]
Average gross salary
€1,455 / $1,635 monthly (December, 2018)
€1,193 / $1,340 monthly (December, 2018)
Main industries
engineering, electronics, wood and articles of wood, textiles, information technology, telecommunications
External
ExportsIncrease €14.4 billion (2018)[8]
Export goods
Electrical equipment, wood and articles of wood, mineral products, agriculture products, mechanical appliances
Main export partners
ImportsIncrease €16.2 billion (2018)[8]
Import goods
Electrical equipment, transport equipment, agricultural products, mineral products, mechanical appliances
Main import partners
FDI stock
Increase $27.05 billion (31 December 2017 est.)[3]
Increase Abroad: $10.96 billion (31 December 2017 est.)[3]
Increase $809 million (3.1% of GDP, 2017 est.)[2][3]
Negative increase $19.05 billion (31 December 2016 est.)[3]
Public finances
Positive decrease 8.4% of GDP (2018)[9]
−0.3% (of GDP) (2017 est.)[3]
Revenues10.37 billion (2017 est.)[3]
Expenses10.44 billion (2017 est.)[3]
Economic aiddonor: ODA, €40.3 million (2016)[10]
AA- (Standard & Poor's)
A+ (Fitch Ratings)
A1 (Moody's)
A+ (Scope)[11]
Foreign reserves
Decrease $345 million (31 December 2017 est.)[3]
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.
Labour productivity levels in Europe. OECD, 2015
Labour productivity level of Estonia is one of the lowest in EU, but also on par with much of the rest of Eastern Europe. OECD, 2015[12]

Overview

Before the Second World War, Estonia's economy was based on agriculture, but there was a significant knowledge sector, with the university city of Tartu known for scientific contributions, and a growing industrial sector, similar to that of neighbouring Finland. Products, such as butter, milk, and cheese were widely known in the west European markets. The main markets were Germany and the United Kingdom, and only 3% of all commerce was with the neighbouring USSR. Estonia and Finland had a relatively similar standard of living.[15]

The USSR's annexation of Estonia in 1940 and the ensuing Nazi and Soviet destruction during World War II crippled the Estonian economy. The subsequent Soviet occupation and post-war Sovietization of life continued with the integration of Estonia's economy and industry into the USSR's centrally planned structure. Estonia's GDP per capita was just $100 in 1991.[16]

After Estonia[17] moved away from communism in the late 1980s, restored its independence in 1991 and became a market economy, it emerged as a pioneer in the global economy. In 1992, the country adopted the Estonian kroon as its own currency, and this greatly stabilised the economy. In 1994, it became one of the first countries in the world to adopt a flat tax, with a uniform rate of 26% regardless of personal income. Estonia received more foreign investment per capita in the second half of the 1990s than any other country in Central and Eastern Europe. Between 2005 and 2008, the personal income tax rate was reduced from 26% to 21% in several steps.[18]

The country has been quickly catching up with the EU-15; its GDP per capita having grown from 34.8% of the EU-15 average in 1996 to 65% in 2007, similar to that of Central European countries.[18] It is already rated a high-income country by the World Bank. The GDP (PPP) per capita of the country, a good indicator of wealth, was $23,631 in 2012 according to the World Bank,[19] between that of Portugal and Lithuania, but below that of long-time EU members such as Greece or Spain. Because of its economic performance after the Soviet breakup, Estonia has been termed one of the Baltic Tigers.

In 2008, Estonia was ranked 12th of 162 countries in the Index of Economic Freedom 2008, the best of any former Soviet republic. The same year, the country was at the bottom of the list of European states by labour market freedom, but the government is drafting improvements.[20]

For Estonia, the late-2000s recession was comparatively easier to weather, because Estonia's budget has consistently been kept balanced, and this meant that Estonia's public debt relative to the country's GDP has remained the lowest in Europe. The economy recovered in 2010.[21]

On 1 January 2011, Estonia joined the euro,[22] and became the first ex-Soviet republic to join the eurozone.[23]

In 2013, the World Bank Group rated Estonia as 21st on the Ease of Doing Business Index.

History

Early history

Until the early 13th century, the territory that is now known as Estonia was independent. The economy was largely an agricultural one, but Estonia being a country with a long coastline, there were also many maritime activities. Autonomous development was brought to an end by the Northern Crusades undertaken by the King of Denmark, the German Livonian and the Teutonic military orders. The Estonian world was transformed by military conquest. The war against the invaders lasted from 1208–1227. The last Estonian county to fall was the island of Saaremaa in 1261.

Thereafter, through many centuries until WWI, Estonian agriculture consisted of native peasants working large feudal-type estates held by ethnic German landlords. In the decades prior to independence, centralised Czarist rule had created a rather large industrial sector dominated by the Kreenholm Manufacturing Company, then the world's largest cotton mill.

Independence

After declaring independence in 1918, the Estonian War of Independence and the subsequent signing of the Treaty of Tartu in 1920, the new Estonian state inherited a ruined post-war economy and an inflated ruble currency. Despite considerable hardship, dislocation, and unemployment, Estonia spent the first decade of independence entirely transforming its economy. In 1918, The Czarist ruble was replaced by the Estonian mark, which was in circulation until 1927. By 1929, a stable currency, the kroon, had been established. It was issued by the Bank of Estonia, the country's central bank. Compensating the German landowners for their holdings, the government confiscated the estates and divided them into small farms, which subsequently formed the basis of Estonian prosperity. Trade focused on the local market and the West, particularly Germany and the United Kingdom. Only 3% of all commerce was with the USSR.

Soviet occupation

The USSR's forcible annexation of Estonia in 1940 and the ensuing Nazi and Soviet destruction during World War II crippled the Estonian economy. Post-war Soviet occupation and Sovietisation of life continued with the integration of Estonia's economy and industry into the USSR's centrally planned structure. More than 56% of Estonian farms were collectivised in the month of April 1949 alone after mass deportations to Siberia the previous month. Moscow expanded on those Estonian industries which had locally available raw materials, such as oil shale mining and phosphorites.

Restoration of independence, modernisation and liberalisation

Tln1
Maakri has become the Central business district of Tallinn in the 21st century

Since reestablishing independence, Estonia has styled itself as the gateway between East and West and pursued economic reform and integration with the West. Estonia's market reforms put it among the economic leaders in the former COMECON area. A balanced budget, almost non-existent public debt, flat-rate income tax, free trade regime, fully convertible currency backed by currency board and a strong peg to the euro, competitive commercial banking sector, hospitable environment for foreign investment, innovative e-Services and mobile-based services are all hallmarks of Estonia's free-market-based economy.

In June 1992, Estonia replaced the ruble with its own freely convertible currency, the kroon (EEK). A currency board was created and the new currency was pegged to the German Mark at the rate of 8 Estonian kroons for 1 Deutsche Mark. When Germany introduced the euro the peg was changed to 15.6466 kroons for 1 euro.

Estonia was set to adopt the euro in 2008, but due to the inflation rate being above the required 3%, the adoption date was delayed to 2011. On 1 January 2011, Estonia adopted the euro and became the 17th eurozone member state.[22]

The privatisation of state-owned firms is virtually complete, with only the port and the main power plants remaining in government hands.

The constitution requires a balanced budget, and the protection afforded by Estonia's intellectual property laws is on a par of that of Europe's.

In early 1992, both liquidity problems and structural weakness stemming from the communist era precipitated a banking crisis. As a result, effective bankruptcy legislation was enacted and privately owned; well-managed banks emerged as market leaders. Today, near-ideal conditions for the banking sector exist. Foreigners are not restricted from buying bank shares or acquiring majority holdings.

The fully electronic Tallinn Stock Exchange opened in early 1996, and was purchased by Finland's Helsinki Stock Exchange in 2001.

Estonia joined the World Trade Organization in 1999.

From the early 2000s to the latter part of that decade, the Estonian economy experienced considerable growth. In the year 2000, Estonian GDP grew by 6.4%.

Upon accession to the European Union in 2004, double-digit growth was soon after observed.

GDP grew by 7.9% in 2007 alone. Increases in labor costs, the imposition of tax on tobacco, alcohol, electricity, fuel, gas, and other external pressures (growing prices of oil and food on the global market) were expected to inflate price levels by 10% in the first months of 2009.

The 2008 financial crisis, response and recovery

Real GDP growth in Estonia, 2002-2012
Real GDP growth in Estonia, 2002-2012.

The Financial Crisis of 2008 has had a deep effect on the Estonian economy, primarily as a result of an investment and consumption slump that followed the burst of the real estate market bubble that had been building up during the preceding years.

After a long period of very high growth of GDP, the GDP of Estonia decreased. In the first quarter 2008, GDP grew only 0.1%, and then decreased: negative growth was −1.4% in the 2nd quarter, a little over −3% (on a year-to-year basis) in the 3rd quarter, and −9.4% in the 4th quarter of that year.[24]

The government made a supplementary negative budget, which was passed by the Riigikogu. The revenue of the budget was decreased for 2008 by EEK 6.1 billion and the expenditure by EEK 3.2 billion.[25] A current account-deficit was extant, but began to shrink in the last months of 2008, and had been expected to continue to do so in the near future.

In 2009, the Estonian economy further contracted by 15.1% in the first quarter.[24] Low domestic and foreign demand had depressed the economy's overall output.[26] The Estonian economy's 33.7% industrial production drop was the sharpest decrease in industrial production in the entire European Union.[27] That year, Estonia was one of the five worst-performing economies in the world in terms of annual GDP growth rate,[28] and had one of the greatest rates of unemployment in the EU, which rose from 3.9% in May 2008 to 15.6% in May 2009.[29]

Some international experts and journalists, who like to view the three Baltic states as a single economic identity, had failed to notice that Estonia has constantly performed better than Latvia and Lithuania on many fundamental indicators. The current-account deficit and inflation was lower than in Latvia; GDP per capita was higher than in Latvia and Lithuania; Estonia's public debt was a low 3.8% of GDP, and government reserves were close to 10% of GDP. The difference is exemplified by the fact, that in December 2008, Estonia became one of the donor countries to the IMF lead rescue package for Latvia.

In response to the crisis, the Ansip government opted for fiscal consolidation and retrenchment by maintaining fiscal discipline and a balanced budget in combination with austerity packages: The government increased taxes, and reduced public spending by slashing expenditures and public salaries across the board.[21]

In July 2009, the value-added tax was increased from 18% to 20%.[30] The recorded budget deficit for 2009 was just 1.7% of GDP.[21]

The result was, that Estonia was one of only five EU countries in 2009 that had met the Maastricht criteria for debt and deficit, and had the third-lowest deficit after Luxembourg and Sweden. Neither did Estonia need to ask help from the IMF. Despite the third-largest drop in GDP, the country had the lowest budget deficit and the lowest public debt among Central and Eastern European countries.

In 2009, the Estonian economy began to rebound, and economic growth resumed in the second half of 2010. The country's unemployment rate has since dropped significantly to pre-recession levels.[31] To top it off, Estonia was granted permission in 2010 to join the eurozone in 2011.[21]

Joining the euro

Before joining the eurozone, the Estonian kroon had been pegged to the euro at a rate of 15.64664 EEK to one euro; before then, the kroon was pegged to the German mark at approximately 8 EEK to 1 DEM.

Plans to join the euro were in place well before 2011. The design of Estonian euro coins was finalized in late 2004.[32]

Estonia's journey towards the euro took longer than originally projected, owing to the inflation rate continually being above the required 3% before 2010,[33] which prevented the country from fulfilling the entry criteria. The country originally planned to adopt the euro on 1 January 2007; however, it did not formally apply that year, and officially changed its target date twice: first to 1 January 2008, and later to 1 January 2011.[23]

On 12 May 2010, the European Commission announced that Estonia had met all criteria to join the eurozone.[34] On 8 June 2010, EU finance ministers agreed that Estonia would be able to join the euro on 1 January 2011.[35] On 13 July 2010, Estonia received the final approval from ECOFIN to adopt the euro onwards from 1 January 2011.

The switchover to the euro took place on 1 January 2011.[22]

With that, Estonia became the first ex-Soviet republic to join the eurozone.[23]

On 9 August 2011, just days after Standard & Poor's raised Estonia's credit rating from A to AA-. Among the factors, S&P cited as contributing to its decision was confidence in Estonia's ability to "sustain strong economic growth."[36] Estonia's GDP growth rate in 2011 was above 8%, despite having negative population growth.[37][38]

The economy today

In the second quarter of 2013, the average monthly gross wage in Estonia was €976 (15,271 kroons, US$1,328).[39] This figure has grown consistently to €1310 (20,497 kroons, US $1473)[40] as of 2018.

Estonia is nearly energy-independent, supplying over 90% of its electricity needs with locally mined oil shale. Alternative energy sources such as wood, peat, and biomass make up approximately 9% of primary energy production. Estonia imports needed petroleum products from western Europe and Russia. Oil shale energy, telecommunications, textiles, chemical products, banking, services, food and fishing, timber, shipbuilding, electronics, and transportation are key sectors of the economy. The ice-free port of Muuga, near Tallinn, is a modern facility featuring good transshipment capability, a high-capacity grain elevator, chill/frozen storage, and brand-new oil tanker off-loading capabilities. The railroad serves as a conduit between the West, Russia, and other points to the East.

Estonia today is mainly influenced by developments in Finland, Russia, Sweden and Germany – the four main trade partners. The government has significantly increased its spending on innovation since 2016, with €304 million aimed to stimulate research and development in 2017[41].

Future projections

Long-term prospects for the Estonian economy remain among the most promising in Europe. In 2011, the real GDP growth in Estonia was 8.0%, and according to projections made by CEPII, the GDP per capita could rise by 2025 to the level of Nordic economies of Sweden, Finland, Denmark, and Norway. According to the same projections, by 2050, Estonia could become the most productive country in the EU, after Luxembourg, and thus join the top five most productive nations in the world.[42]

Employment participation

Estonia Unemployment Rates
Unemployment rate as a percentage of the labor force in Estonia according to Statistics Estonia.

Estonia has around 600,000 employees, yet the country has a shortage of skilled labor, and since skill shortages are experienced everywhere in Europe, the government has increased working visa quota for non-EEA citizens, although it has nevertheless been criticized for being inadequate for addressing the shortages.

The late-2000s recession in the world, the near-concurrent local property bust with changes in Estonian legislation to increase labour market flexibility (making it easier for companies to lay off workers) saw Estonia's unemployment rate shoot up to 18.8% throughout the duration of the crisis, then stabilise to 13.8% by summer 2011, as the economy recovered on the basis of strong exports. Internal consumption, and therefore imports, plummeted; and cuts were made in public finances.[43] Some of the reduction in unemployment has been attributed to some Estonians' emigrating for employment to Finland, the UK, Australia, and elsewhere.[44]

After the recession, the unemployment rate went lower, and throughout 2015 and 2016, the rate stayed near the levels that preceded the economic downturn, staying at just above 6%.[45]

Sectors

Tallinn has emerged as the country's financial center. According to Invest in Estonia, advantages of Estonian financial sector are unbureaucratic cooperation between companies and authorities, and relative abundance of educated people although young educated Estonians tend to emigrate to western Europe for greater income. The largest banks are Swedbank, SEB Pank, and Nordea. Several IPOs have been made recently on the Tallinn Stock Exchange, a member OMX system.

The Estonian service sector employs over 60% of workforce. Estonia has a strong information technology (IT) sector, partly due to the Tiigrihüpe project undertaken in mid-1990s, and has been mentioned as the most "wired" and advanced country in Europe in the terms of e-government.[46][47]

Farming, which had been forcibly collectivized for decades until the transition era of 1990–1992, has become privatized and more efficient, and the total farming area has increased in the period following Estonia's restoration of independence.[48] The share of agriculture in the gross domestic product decreased from 15% to 3.3% during 1991–2000, while employment in agriculture decreased from 15% to 5.2%.[49]

The mining industry makes up 1% of the GDP. Mined commodities include oil shale, peat, and industrial minerals, such as clays, limestone, sand and gravel.[50] Soviets created badly polluting industry in the early 1950s, concentrated in the north-east of the country. Socialist economy and military areas left the country highly polluted, and mainly because of oil shale industry in Ida-Virumaa, sulfur dioxide emissions per person are almost as high as in the Czech Republic. The coastal seawater is polluted in certain locations, mainly the east. The government is looking for ways to reduce pollution further.[51] In 2000, the emissions were 80% smaller than in 1980, and the amount of unpurified wastewater discharged to water bodies was 95% smaller than in 1980.[52]

Estonian productivity is experiencing rapid growth, and consequently wages are also rising quickly, with a rise in private consumption of about 8% in 2005. According to Estonian Institute of Economic Research, the largest contributors to GDP growth in 2005 were processing industry, financial intermediation, retailing and wholesale trade, transport and communications.[53]

Largest companies by revenue

Company Revenue
(EUR millions)[54]
Tallink Grupp 967.0
Ericsson Eesti 815.4
Eesti Energia 754.0
Tallinna Kaubamaja 651.3
Maxima Eesti 464.4
Manoir Energy 423.1
BLRT Grupp 399.9
Rimi Eesti Food 377.6
Orlen Eesti 370.8
Swedbank 367.1

Largest companies by profit

Company Profit
(EUR millions)[54]
Swedbank 190.6
Eesti Energia 101.0
SEB Pank 85.3
Tallink Grupp 53.6
Stora Enso Eesti 43.5
Riigimetsa majandamise keskus 43.2
Telia Eesti 33.3
Olympic EG 30.0
Tallinna Kaubamaja 29.8
Harju Elekter 29.1

Infrastructure

VKG Ojamaa kaevandus
Oil shale supplies around 70% of the country's primary energy. Oil shale extraction in VKG Ojamaa mine.

Railway transport dominates the cargo sector, comprising 70% of all carried goods, domestic and international. Road transport is the one that prevails in the passenger sector, accounting for over 90% of all transported passengers. 5 major cargo ports offer easy navigational access, deep waters, and good ice conditions. There are 12 airports and 1 heliport in Estonia. Lennart Meri Tallinn Airport is the largest airport in Estonia, with 1,73 million passengers and 22,764 tons of cargo (annual cargo growth 119.7%) in 2007. International flight companies such as SAS, Finnair, Lufthansa, EasyJet, and Nordic Aviation Group provide direct flights to 27 destinations.[55]

Approximately 7.5% of the country's workforce is employed in transportation and the sector contributes over 10% of GDP. Estonia is getting much business from traffic between Europe and Russia, especially oil cargo through Estonian ports. Transit trade's share of GDP is disputed, but many agree that Russia's increased hostility is decreasing the share.[56][57]

Instead of coal, electricity is generated by burning oil shale, with largest stations in Narva. Oil shale supplies around 70% of the country's primary energy. Other energy sources are natural gas imported from Russia, wood, motor fuels, and fuel oils.[58]

Wind power in Estonia amounts to 58.1 megawatts, whilst roughly 399 megawatts worth of projects are currently being developed. Estonian energy liberalization is lagging far behind the Nordic energy market. During the accession negotiations with the EU, Estonia agreed that at least 35% of the market are opened before 2009 and all of non-household market, which totals around 77% of consumption, before 2013. Estonia is concerned that Russia could use energy markets to bully it.[59] In 2009, the government considered granting permits to nuclear power companies, and there were plans for a shared nuclear facility with Latvia and Lithuania.[60] Those plans were shelved after the Fukushima Daiichi nuclear disaster in March 2011.

Estonia has high Internet penetration, and connections are available throughout most of the country.

Trade

Tree Map of Estonia's Exports in 2011
Graphical depiction of Estonia's product exports in HS product classification.
Country Export Import
 Finland 16% 14%
 Sweden 19% 8%
 Latvia 10% 9%
 Lithuania 6% 9%
 Germany 5% 11%
 Russia 7% 6%
 Netherlands 3% 6%

Estonia exports machinery and equipment (33% of all exports annually), wood and paper (15% of all exports annually), textiles (14% of all exports annually), food products (8% of all exports annually), furniture (7% of all exports annually), and metals and chemical products. Estonia also exports 1.562 million megawatt hours of electricity annually. Estonia imports machinery and equipment (33.5% of all imports annually), chemical products (11.6% of all imports annually), textiles (10.3'% of all imports annually), food products (9.4% of all imports annually), and transportation equipment (8.9% of all imports annually). Estonia imports 200 thousand megawatt hours of electricity annually.[61]

Natural resources

Resource Location Reserves
Oil shale north-east 1,137,700,000 mln t
Sea mud (medical) south 1,356,400,000 mln t
Construction sand across the country 166,700,000 mln m³
Construction gravel north 32,800,000 mln m³
Lake mud (medical) across the country 1,133,300 mln t
Lake mud (fertilizer) east 170,900 t
Ceramic clay across the country 10,600,000 mln m³
Ceramsid clay (for gravel) across the country 2,600,000 mln m³
Technological dolomite west 16,600,000 mln m³
Technological limestone north 13,800,000 mln m³
Decoration dolomite west 2,900,000 mln m³
Construction dolomite west 32,900,000 mln m³
Blue clay across the country 2,044,000 mln t
Granite across the country 1,245,100,000 mln m³
Peat across the country 230,300,000 mln t
Construction limestone north 110,300,000 mln m³
Limestone cement north 9,400,000 mln m³
Clay cement north 15,6000,000 mln m³
Graptolitic argillite[62] north 64,000,000,000 mln t
Wood across the country 15,6000,000 mln m³
Technological sand north 3,300,000 mln m³
Lake lime north and south 808,000 t
Phosphorite north over 350,000,000 mln t (estimated)
Subsoil across the country 21,1 km³

Data

The following table shows the main economic indicators in 1993–2018.[63]

Year GDP
(in Bil. US$ PPP)
GDP per capita
(in US$ PPP)
GDP growth
(real)
Inflation rate
(in Percent)
Unemployment
(in Percent)
Government debt
(in % of GDP)
1993 Increase11.09 Increase7,338 Increasen/a Negative increase Negative increase6.5 % n/a
1994 Increase Increase Increase Negative increase Positive decrease n/a
1995 Increase11.62 Increase8,022 Increase2.2 % Negative increase29.0 % Negative increase9.6 % 9 %
1996 Increase Increase Increase Negative increase Positive decrease Positive decrease
1997 Increase Increase Increase Negative increase Positive decrease Positive decrease
1998 Increase Increase Increase Negative increase Positive decrease Positive decrease
1999 Increase Increase Increase Negative increase Negative increase Negative increase
2000 Increase16.97 Increase12,113 Increase10.6 % Negative increase3.9 % Negative increase14.6 % Positive decrease5 %
2001 Increase Increase Increase Negative increase Negative increase Negative increase
2002 Increase Increase Increase Increase Negative increase Negative increase
2003 Increase Increase Increase Increase Positive decrease Negative increase
2004 Increase Increase Increase Negative increase Positive decrease Negative increase
2005 Increase26.86 Increase19,765 Increase9.4 % Negative increase4.1 % Positive decrease8.0 % Steady5 %
2006 Increase30.53 Increase22,600 Increase10.3 % Increase4.4 % Positive decrease5.9 % Negative increase4 %
2007 Increase33.77 Increase25,144 Increase7.7 % Negative increase6.7 % Positive decrease4.6 % Positive decrease4 %
2008 Increase32.56 Increase24,328 Increase−5.4 % Negative increase10.6 % Positive decrease5.5 % Negative increase4 %
2009 Increase27.98 Increase20,946 Increase−14.7 % Negative increase0.2 % Negative increase13.5 % Negative increase7 %
2010 Increase28.96 Increase21,721 Increase2.3 % Negative increase2.7 % Negative increase16.7 % Negative increase7 %
2011 Increase31.80 Increase23,919 Increase7.6 % Negative increase5.1 % Steady13.2 % Negative increase6 %
2012 Increase33.79 Increase25,494 Increase4.3 % Negative increase4.2 % Negative increase10.0 % Positive decrease10 %
2013 Increase35.00 Increase26,508 Increase1.9 % Increase3.2 % Negative increase8.6 % Negative increase10 %
2014 Increase36.65 Increase27,856 Increase2.9 % Increase0.5 % Positive decrease7.4 % Positive decrease11 %
2015 Increase37.67 Increase28,685 Increase1.7 % Positive decrease0.1 % Positive decrease6.2 % Negative increase10 %
2016 Increase38.94 Increase29,684 Increase2.1 % Positive decrease0.9 % Positive decrease6.8 % Negative increase9 %
2017 Increase41.56 Increase31,750 Increase4.9 % Increase3.7 % Positive decrease5.8 % Positive decrease9 %
2018 Increase Increase Increase Increase Positive decrease Positive decrease

See also

Notes

  1. ^ Before 2011: Estonian kroon.
  2. ^ a b c d e f g h i j "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 16 March 2019.
  3. ^ a b c d e f g h i j k l "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 3 March 2019.
  4. ^ "Last year, every fifth person lived in relative poverty". Statistics Estonia. 18 December 2017.
  5. ^ "Poverty headcount ratio at national poverty lines (% of population)". data.worldbank.org. World Bank. Retrieved 3 March 2019.
  6. ^ "Gini coefficient of equivalised disposable income - EU-SILC survey". ec.europa.eu. World Bank. Retrieved 16 April 2019.
  7. ^ "Employment rate by sex, age group 20-64". ec.europa.eu/eurostat. Eurostat. Retrieved 16 June 2019.
  8. ^ a b c d "Last year, trade increased". Statistics Estonia. 18 April 2019.
  9. ^ "General government gross debt". ec.europa.eu/eurostat. Eurostat. Retrieved 16 June 2019.
  10. ^ "Estonia's 2016 development and humanitarian aid figures released". Ministry of Foreign Affairs of Estonia. 2016. Retrieved 1 April 2018.
  11. ^ "Scope affirms Estonia's long-term credit rating at A+ with Stable Outlook". Scope Ratings. Retrieved 8 April 2019.
  12. ^ https://data.oecd.org/lprdty/gdp-per-hour-worked.htm#indicator-chart
  13. ^ "World Economic and Financial Surveys / World Economic Outlook". Database—WEO Groups and Aggregates Information. International Monetary Fund. April 2011. Retrieved 21 August 2012.
  14. ^ [1]
  15. ^ Maddison 2006, p. 185
  16. ^ "Eesti majandus oli võrdsel tasemel Paapua Uus-Guineaga" [Estonia's economy was on the same level with Papua New Guinea] (in Estonian). Äripäev. 30 January 2007. Retrieved 9 February 2019.
  17. ^ "Estonia", Wikipedia, 28 March 2019, retrieved 5 April 2019
  18. ^ a b Laar, Mart (7 August 2007). "The Estonian Economic Miracle". The Heritage Foundation. Retrieved 21 August 2012.
  19. ^ "GDP per capita, PPP (current international $)". World Bank. Retrieved 3 March 2015.
  20. ^ Koovit, Kaja (20 May 2008). "Estonia on bottom of Europe by labour market freedom". Baltic Business News. Retrieved 1 August 2012.
  21. ^ a b c d Kattel, Rainer; Raudla, Ringa (August 2011), "Why Did Estonia Choose Fiscal Retrenchment after the 2008 Crisis?", Journal of Public Policy, Researchgate, retrieved 9 February 2019
  22. ^ a b c Mardiste, David (1 January 2011). "Estonia joins crisis-hit euro club". Reuters. Retrieved 21 August 2012.
  23. ^ a b c "Alcohol and tobacco tax to rise in Estonia next year". Finland: Helsingin Sanomat. 25 May 2007. Retrieved 1 January 2009.
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1 kroon

The 1 kroon (1 EEK) is the smallest valued banknote of the Estonian kroon, the former currency of Estonia. Kristjan Raud (1865–1943), an Estonian painter, teacher, and cultural historian, is featured with a portrait on the obverse. A view of Toompea Castle in Tallinn appears on the reverse.The 1 kroon was only issued once and had been steadily going out of circulation since a coin of the same value was also issued. At the time of replacement by the euro, it was very rarely found in use on an everyday basis. It can be exchanged indefinitely at the currency museum of Eesti Pank for €0.06.

25 krooni

The 25 krooni banknote (25 EEK) is a denomination of the Estonian kroon, the former currency of Estonia. Anton Hansen Tammsaare (1870–1940), who was a famous Estonian writer of classical literature, is featured on the front side of the bill, which is why the 25 krooni banknote is often called a "Tammekas or Tammsaare".

A view of Vargamäe is featured on the reverse side of the banknote. Before the replacement of the EEK by the euro, the 25 krooni was frequently used in everyday transactions. It can be exchanged indefinitely at the currency museum of Eesti Pank for €1.60.

2 krooni

The 2 krooni banknote (2 EEK) is a denomination of the Estonian kroon, the former currency of Estonia. Karl Ernst von Baer, who was an Estonian Baltic German anthropologist, naturalist and geographer (1792–1876), is featured with a portrait on the obverse. The 2 krooni bill is called sometimes a "kahene" meaning "a two".

A view of Tartu University which was founded in 1632 is featured on the reverse. Before the replacement of the EEK by the euro, the 2 krooni banknote was the smallest denomination most commonly used by Estonian residents on an everyday basis. It can be exchanged indefinitely at the currency museum of Eesti Pank for €0.13.

50 krooni

The 50 krooni banknote (50 EEK) is a denomination of the Estonian kroon, the former currency of Estonia. A portrait of Rudolf Tobias (1873–1918), a famous Estonian composer, is engraved on the front side of the bill along with the pipe organ of the Käina church (which features the Eye of Providence).

The vignette on the back features the Estonia Theatre in Tallinn. The only printing of the 50 krooni banknote took place in 1994. Fewer 50 krooni notes were ordered by the Bank of Estonia than any other denominations. A medium size banknote, it was one of the most rarely used denominations. It can be exchanged indefinitely at the currency museum of Eesti Pank for €3.20.

5 krooni

The 5 krooni banknote (5 EEK) is a denomination of the Estonian kroon, the former currency of Estonia. Paul Keres (1916–1975), who was a world-famous Estonian chess player, international Grandmaster and prominent chess theorist, is featured with an engraved portrait on the obverse.

The reverse features Hermann Castle founded in 1256 by the Danes and Ivangorod Fortress established by Ivan III in 1492. The 5 krooni banknote was only issued shortly after the reestablishment of the Estonian state in 1991, but remained in common use until the EEK was replaced by the euro. A 5 krooni coin was also minted but the banknote was more commonly found in circulation. The note can be exchanged indefinitely at the currency museum of Eesti Pank for €0.32.

Baltic Tiger

Baltic Tiger is a term used to refer to any of the three Baltic states of Estonia, Latvia, and Lithuania during their periods of economic boom, which started after the year 2000 and continued until 2006–2007. The term is modeled on Four Asian Tigers, Tatra Tiger and Celtic Tiger, which were used to describe the economic boom periods in parts of Asia, Slovakia and Ireland, respectively.

Bank of Estonia

The Bank of Estonia (Estonian: Eesti Pank) is the central bank of Estonia as well as a member of the Eurosystem organisation of euro area central banks.

The Bank of Estonia also belongs to the European System of Central Banks. Until 2010, the bank issued the former Estonian currency, the kroon.

The Governor of the Bank of Estonia, currently Ardo Hansson, is a member of the Governing Council of the European Central Bank.

British Estonian Chamber of Commerce

The British Estonian Chamber of Commerce (BECC) is a NGO founded in 1996 with the aim of bringing British and Estonian business communities together within Estonia. Its offices are based in Tallinn, Estonia.

The BECC is a member of the Council of British Chambers of Commerce in Europe (COBCOE) and the Foreign Investors Council in Estonia (FICE). The BECC organises monthly business seminars and conferences as well as business networking events.

Currency board

A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target.

Estonian kroon

The kroon (sign: kr; code: EEK) was the official currency of Estonia for two periods in history: 1928–1940 and 1992–2011. Between 1 January and 14 January 2011, the kroon circulated together with the euro, after which the euro became the sole legal tender in Estonia. The kroon was subdivided into 100 cents (senti; singular sent). The word kroon (Estonian pronunciation: [ˈkroːn], “crown”) is related to that of the Nordic currencies (such as the Swedish krona and the Danish and Norwegian krone) and derived from the Latin word corona ("crown"). The kroon succeeded the mark in 1928 and was in use until the Soviet invasion in 1940 and Estonia's subsequent incorporation into the Soviet Union when it was replaced by the Soviet ruble. After Estonia regained its independence, the kroon was reintroduced in 1992.

Forestry in Estonia

Forests cover about 50% of the territory of Estonia, or around 2 million hectares, and so make out an important and dominating landscape type in the country. According to the Estonian Ministry of Environment, national policy recognises that forests are a natural and ecological resource, and the importance of forests is to be considered from an economic, social, ecological and cultural aspect.

Index of Estonia-related articles

This page list topics related to Estonia.

List of banks in Estonia

This is a list of banks in Estonia, based on information from the Estonian Financial Supervision Authority.

List of companies of Estonia

Estonia is a country in the Baltic region of Northern Europe. It is a developed country with an advanced, high-income economy that as of 2011 is among the fastest growing in the EU. Its Human Development Index ranks very highly, and it performs favourably in measurements of economic freedom, civil liberties and press freedom (3rd in the world in 2012 and 2007). The 2015 PISA test places Estonian high school students 3rd in the world, behind Singapore and Japan. Citizens of Estonia are provided with universal health care, free education and the longest paid maternity leave in the OECD. Since independence the country has rapidly developed its IT sector, becoming one of the world's most digitally advanced societies. In 2005 Estonia became the first nation to hold elections over the Internet, and in 2014 the first nation to provide E-residency.

For further information on the types of business entities in this country and their abbreviations, see "Business entities in Estonia".

OMX Tallinn

The OMX Tallinn (OMXT) is the main stock market index in Estonia. It reflects changes in the prices of shares listed in the Main and Investor lists of the Estonian Stock Exchange, and the Tallinn Stock Exchange. It uses the Paasche Index Formula. The value of the index was calibrated to 100 on 3 June 1996. Before 2005 the index was known as TALSE.

Outline of Estonia

The following outline is provided as an overview of and topical guide to Estonia:

Estonia – state of 1.29 million people in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia (343 km), and to the east by Lake Peipus and Russia (338.6 km). Across the Baltic Sea lies Sweden in the west and Finland in the north. The territory of Estonia covers 45,227 km2 (17,462 sq mi), and is influenced by a temperate seasonal climate. The Estonians are a Finnic people, and the official language, Estonian, is a Finno-Ugric language closely related to Finnish and distantly to Hungarian.

Tallinn Stock Exchange

The Nasdaq Tallinn Stock Exchange is a stock exchange operating in Tallinn, Estonia. Nasdaq Tallinn is the only regulated secondary securities market in Estonia. The major stock market index is Nasdaq Tallinn, formerly known as TALSE.

Tax and Customs Board

The Tax and Customs Board (Estonian: Maksu- ja Tolliamet), also known by its acronym MTA, is the taxation authority in the Republic of Estonia. It is an agency of the Ministry of Finance.

The agency deals with collection of revenue for the state budget, the implementation of tax laws, customs rules and related legislation, enforcement, licensing gambling companies and lottery organisations, supervision and inspection of gambling and lotteries, and provision of service to citizens and e-residents to aid in fulfilment of tax liability and customs procedures.

Taxation in Estonia

Taxation in Estonia consists of state and local taxes. A relatively high proportion of government revenue comes from consumption taxes whilst revenue from capital taxes is one of the lowest in the European Union.

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