Economy in Numbers

14.02.2012

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-, outlook negative
Fitch: A+, outlook stable

Key Indicators

Key Indicators	2004	2005	2006	2007	2008	2009	2010
Population as of 1 January (million)	1.35*	1.35*	1.36	1.35	1.34*	1.34	1.34
GDP at current prices (billion EUR)	9.7	11.2	13.4	16.0	16.3	13.8	14.3
Real growth of GDP (%)	6.3	8.9	10.1	7.5	-3.7	-14.3	2.3
GDP per capita at current prices (EUR)	7 178	8 307	9 967	11 977	12 161	10 326	10 674
GDP per capita (PPS) (EU-27=100)	57	61	66	69	68	64	65
Annual FDI (million EUR)	770.8	2 307.3	1 431.9	1 991.1	1 179.7	1 209.0	1 196.5
FDI stock, as of 31 December (million EUR)	7 374	9 539	9 660	11 332	11 648	11 268	12 269
FDI stock per capita, as of 31 December (EUR)	5 462	7 066	7 155	8 394	8 693	8 409	9 156
Consumer price index compared to previous year (%)	3.0	4.1	4.4	6.6	10.4	-0.1	3.0
Unemployment rate** (%)	9.7	7.9	5.9	4.7	5.5	13.8	16.9
Average monthly wage (EUR)	466	516	601	725	825	784	792
Current account balance (% of GDP)	-11.3	-10.0	-15.3	-16.2	-9.8	3.7	3.5
Deficit (-)/Surplus of state budget (% of GDP)	1.6	1.6	2.5	2.4	-2.9	-2.0	0.3
Export (billion EUR)***	4.769	6.202	7.719	8.033	8.470	6.481	8.747
Import (billion EUR)***	6.703	8.229	10.711	11.439	10.896	7.271	9.245
Trade balance (billion EUR)***	-1.934	-2.027	-2.992	-3.406	-2.426	-790	-498
Total government expenditures (% of GDP)	34.0	33.6	33.6	34.0	39.5	45.2	40.6

* 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)

Field of Activity	2004	2005	2006	2007	2008	2009	2010
Manufacturing	16.7	16.5	16.5	16.0	15.4	14.3	16.4
Wholesale and retail trade; repair of motor vehicles etc.	14.1	14.4	14.5	13.9	13.4	12.1	11.9
Real estate activities	10.6	10.6	10.4	10.3	10.2	11.5	10.9
Transport and storage	9.4	8.4	8.4	7.9	7.9	7.8	8.8
Public administration and defence; compulsory social security	5.7	5.5	5.2	5.5	6.4	7.8	7.3
Construction	7.0	8.6	9.9	10.7	9.9	6.9	5.7
Education	4.8	4.6	4.3	4.2	4.7	5.5	5.1
Information and communication	4.7	4.5	4.3	4.4	4.7	5.3	4.6
Electricity, gas, steam and air conditioning supply	2.9	2.8	2.6	2.5	2.5	3.4	4.0
Financial and insurance activities	3.8	3.6	4.0	4.0	4.3	3.9	3.6
Agriculture and hunting	3.8	3.5	3.1	3.5	3.0	2.8	3.3

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 2011, as a % of total trade

figures shown in special trade system

Country	Exports	Country	Imports
1. Sweden	15.6	1. Finland	12.6
2. Finland	15.0	2. Latvia	10.8
3. Russia	11.0	3. Sweden	10.6
4. Latvia	8.0	4. Germany	10.2
5. USA	6.2	5. Russia	8.3
6. Lithuania	4.6	6. Lithuania	8.2
7. Germany	4.5	7. Poland	6.8
8. Nigeria	3.3	8. China	3.6
9. Norway	3.0	9. Netherlands	3.6
10. Netherlands	2.9	10. United Kingdom	2.4
Others	25.9	Others	22.9

Main Exports and Imports in 2011, as a % of total trade

Main Commodity Groups	Exports	Main Commodity Groups	Imports
Machinery and appliances	27.5	Machinery and appliances	27.3
Mineral products	17.3	Mineral products	18.0
Metals and articles of metals	8.6	Agricultural products and food preparations	9.8
Agricultural products and food preparations	8.4	Metals and articles of metals	8.8
Wood and articles of wood	7.7	Transport equipment	8.2
Miscellaneous manufactured articles	6.6	Chemical products	7.6
Transport equipment	4.9	Articles of plastics and rubber	4.8
Chemical products	4.7	Textile products	4.2
Articles of plastics and rubber	2.9	Wood and articles of wood	2.4
Textiles and textile articles	2.9	Miscellaneous manufactured articles	1.8
Paper and articles of paper	2.6	Paper and articles of paper	1.8
Others	5.9	Others	5.3

Source: Statistical Office of Estonia

Direct Investment Position in Estonia by Countries

as of 30 September 2011

Country	Million EUR	% of total
1. Sweden	3 750.9	29.7
2. Finland	2 911.4	23.1
3. Netherlands	1 358.7	10.8
4. Norway	500.8	4.0
5. Russia	460.5	3.6
6. Cyprus	392.2	3.1
7. Lithuania	297.1	2.3
8. USA	291.5	2.3
9. Germany	289.6	2.3
10. Luxembourg	288.2	2.3
Others	2 077.3	16.5
Total	12 618.2	100.0

Source: Bank of Estonia

Estonia's Direct Investment Position abroad by Countries

as of 30 September 2011

Country	million EUR	% of total
1. Lithuania	734.0	31.3
2. Latvia	695.4	20.2
3. Cyprus	602.5	17.5
4. Finland	294.9	8.6
5. Russia	203.0	5.9
6. Ukraine	177.8	5.2
7. Netherlands	84.9	2.5
8. Italy	79.6	2.3
9. Belarus	70.1	2.0
10. USA	65.0	1.9
Others	431.6	12.6
Total	3 438.8	100.0

Source: Bank of Estonia

Telecommunications and IT

76% of population aged 16 to 74 are Internet users (2010, Statistics Estonia).
67.8% of households have access to the Internet at home (2010, 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 2011, the percentage of electronic tax declarations was 93.
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 2010-2011 - 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 26th out of 138 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 2011-2015

Main economic indicators	2011*	2012*	2013*	2014*	2015*
GDP real growth (%)	7.0	3.0	3.3	3.5	3.5
GDP (in nominal terms, billion EUR)	16.0	17.0	18.1	19.2	20.5
GDP deflator (%)	3.5	2.7	3.1	2.7	2.8
Consumer price index (%)	4.9	2.8	3.1	2.7	2.7
Employment (15–74 years old, thousands)	599.6	609.9	616.6	622.1	627.1
Employment growth (%)	5.0	1.7	1.1	0.9	0.8
Unemployment rate (ILO)	12.7	11.1	9.1	7.9	7.1
Average wage (EUR)	831	873	919	967	1 018
Wage real growth (%)	0.0	2.2	1.9	2.3	2.4
Current account (% of GDP)	3.3	2.0	1.2	0.1	-1.5

* Forecast;
Source: Ministry of Finance, September 2011

A Comparison of Economic Forecasts from Various Institutions 2011-2012

	Economic growth, %		Consumer price index, %		Current account, % of GDP
	2011	2012	2011	2012	2011	2012
IMF	6.5	4.0	5.1	3.5	2.4	2.3
OECD	8.0	3.2	5.1	3.2*	3.5	2.6
European Commission	8.0	3.2	5.2*	3.3*	3.1	1.5
Bank of Estonia	7.9	1.9	5.1*	2.8*	2.7	2.0
Ministry of Finance	7.0	3.0	4.9*	2.8*	3.0	2.0