Economy at a Glance

25.11.2008

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

* 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

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

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 2007
as a % of total trade, figures shown in special trade system

Main Exports and Imports in 2007 (as a % of total trade)

Source: Statistical Office of Estonia

Direct Investment Position in Estonia
by Countries as of 30 June 2008

Source: Bank of Estonia

Estonia's Direct Investment Position abroad
by Countries as of 30 June 2008

Source: Bank of Estonia

Telecommunications and IT

Sources: National Communication Board

• 66 per cent of population aged 16 to 74 are Internet users (2008, Statistics Estonia).
• 58 per cent of households have access to the Internet at home (2008, 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 2008, the percentage of electronic tax declarations was over 88.
• Expenditures made in state budget can be followed on the Internet in real-time
• 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

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 2007-2008 - 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 20th out of 127 countries thanks to its regulatory framework for ICT, making Estonia the leader among the Central and Eastern European countries.

Economic Development Perspectives

Growth and associated factors 2006-2012

* Forecast;
Source: Ministry of Finance, November 2008

A Comparison of Economic Forecasts from Various Institutions 2008-2009

* Harmonised consumer price index
Source: Ministry of Finance, European Commission, Bank of Estonia, IMF

More about Estonia's economy: