Estonia Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Estonia, a member of the EU since 2004 and the euro zone since 2011, has a modern market-based economy and one of the higher per capita income levels in Central Europe and the Baltic region, but its economy is highly dependent on trade, leaving it vulnerable to external shocks. Estonia's successive governments have pursued a free market, pro-business economic agenda, and sound fiscal policies that have resulted in balanced budgets and the lowest debt-to-GDP ratio in the EU.

 

The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, Germany, and Russia. The economy’s 4.9% GDP growth in 2017 was the fastest in the past six years, leaving the Estonian economy in its best position since the financial crisis 10 years ago. For the first time in many years, labor productivity increased faster than labor costs in 2017. Inflation also rose in 2017 to 3.5% alongside increased global prices for food and energy, which make up a large share of Estonia’s consumption.

 

Estonia is challenged by a shortage of labor, both skilled and unskilled, although the government has amended its immigration law to allow easier hiring of highly qualified foreign workers, and wage growth that outpaces productivity gains. The government is also pursuing efforts to boost productivity growth with a focus on innovations that emphasize technology start-ups and e-commerce.

Real GDP (purchasing power parity)

$47.44 billion (2020 est.)

$48.87 billion (2019 est.)

$46.54 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

5% (2019 est.)

4.36% (2018 est.)

5.51% (2017 est.)

Real GDP per capita

$35,600 (2020 est.)

$36,800 (2019 est.)

$35,200 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$31.461 billion (2019 est.)

Inflation rate (consumer prices)

2.2% (2019 est.)

3.4% (2018 est.)

3.4% (2017 est.)

Credit ratings

Fitch rating: AA- (2018)

Moody's rating: A1 (2002)

Standard & Poors rating: AA- (2011)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 2.8% (2017 est.)

industry: 29.2% (2017 est.)

services: 68.1% (2017 est.)

GDP - composition, by end use

household consumption: 50.3% (2017 est.)

government consumption: 20.4% (2017 est.)

investment in fixed capital: 24% (2017 est.)

investment in inventories: 2.2% (2017 est.)

exports of goods and services: 77.2% (2017 est.)

imports of goods and services: -74% (2017 est.)

Agricultural products

wheat, milk, barley, rapeseed, rye, oats, peas, potatoes, pork, triticale

Industries

food, engineering, electronics, wood and wood products, textiles; information technology, telecommunications

Industrial production growth rate

9.5% (2017 est.)

Labor force

648,000 (2020 est.)

Labor force - by occupation

agriculture: 2.7%

industry: 20.5%

services: 76.8% (2017 est.)

Unemployment rate

4.94% (2019 est.)

4.73% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 16.7%

male: 18.4%

female: 15% (2021 est.)

Population below poverty line

21.7% (2018 est.)

Gini Index coefficient - distribution of family income

30.4 (2017 est.)

35.6 (2014)

Household income or consumption by percentage share

lowest 10%: 2.3%

highest 10%: 25.6% (2015)

Budget

revenues: 10.37 billion (2017 est.)

expenditures: 10.44 billion (2017 est.)

Budget surplus (+) or deficit (-)

-0.3% (of GDP) (2017 est.)

Public debt

9% of GDP (2017 est.)

9.4% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities, including sub-sectors of central government, state government, local government, and social security funds

Taxes and other revenues

39.9% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

$616 million (2019 est.)

$280 million (2018 est.)

Exports

$21.69 billion (2020 est.) note: data are in current year dollars

$22.94 billion (2019 est.) note: data are in current year dollars

$22.69 billion (2018 est.) note: data are in current year dollars

Exports - partners

Finland 13%, Sweden 9%, Latvia 8%, Russia 8%, United States 7%, Lithuania 6%, Germany 6% (2019)

Exports - commodities

broadcasting equipment, refined petroleum, coal tar oil, cars, prefabricated buildings (2019)

Imports

$21.73 billion (2020 est.) note: data are in current year dollars

$21.68 billion (2019 est.) note: data are in current year dollars

$21.89 billion (2018 est.) note: data are in current year dollars

Imports - partners

Russia 12%, Germany 10%, Finland 9%, Lithuania 7%, Latvia 7%, Sweden 6%, Poland 6%, China 6% (2019)

Imports - commodities

cars, refined petroleum, coal tar oil, broadcasting equipment, packaged medicines (2019)

Reserves of foreign exchange and gold

$345 million (31 December 2017 est.)

$352.2 million (31 December 2016 est.)

Debt - external

$23.944 billion (2019 est.)

$23.607 billion (2018 est.)

Exchange rates

euros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)

NOTE: The information regarding Estonia on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Estonia 2022 information contained here. All suggestions for corrections of any errors about Estonia 2022 should be addressed to the CIA or the source cited on each page.