Currency: ESTONIAN KROON/EURO FROM 01/01/2011
Exchange rate: 15,64 Estonian Kroons for one Euro.
Estonian Economy is characterized by a strong and steady growth. From 2000 to 2006 GDP pratically doubled. The country is at 20th place in the world for competitiveness (WEF's Ranking). The country risk drawn up by OECD correponds to 2 on a 1-to-7 scale .
The process of harmonisation with the other EU members is favored by a real growth rate which in 2006 was around 12% with a consequent 10.8% increase in GDP concerning the same period. The transformation of the Estonian economy dates back to the acquisition of independence in 1991.
After a period of recession in the three following years, mainly due to the loss of the principal export market (Russia) - there has been a real boom accompanied by a marked reduction of State intervention in economic matters.
It is a good result for a small Country that shortly after the Fall of Berlin Wall was on the verge of bankruptcy.
After the Declaration of independence in 1991, there was a massive program of privatization. In less than ten years over 1,500 companies have passed from Statae to private property. Entire sectors such as energy, telecommunications, transport were submitted to a policy of liberalisation.
All this was made possible by the significant inflow of foreign capital that have accompanied the complex transition from statist economy to free market. Subsidies to industry and agriculture were gradually eliminated. Agricultural sector knew a phase of involution mainly due to the slump in demand from Russia and former Soviet countries.
The industrial sector, in particular the one related to the chemical industry and paper processing, was replaced by mobile telephony and computing industry. Finnish and Swedish influence in these areas played a decisive role in the country's economic growth.
Other important industries are those related to timber production and livestock.
Today the main economic activity is represented by tourism and services (Tallinn). The industrial sector is important, too, and it is mainly composed by small and medium-sized companies. Another important factor for the economy of Estonia consists on foreign investment attracted by zero tax on corporate profits. Banking and insurance are developping. The Tallinn Stock Exchange belongs to Omx group, together with Helsinki, Stockholm and Riga ones.
In addition to the Baltic countries, Estonian major trading partners are Sweden and Finland.
Trade relations between the two countries are modest but growing. Italy is AT ninth place among Estonian suppliers, with a ammount corresponding to 2.8%. Italian companies have exported to Estonia, machinery, textiles, means of transportations, but also building materials, chemicals and leather goods. Food (suc as pasta, olive oil, wine and cheese) have an increasing role in Italian export towards Estonia. There also are commercial initiatives as far as concerns real estate, brokerage and catering. In particular, Italian restaurants with Italian management are quite numerous in Tallinn. In general we can say that, from 2003, Italian exports towards Estonia have doubled.
Interchange Italy - Estonia
Socurce: Istat January-December 2009 (update in July 2010)
In the Country Risk Ratings, whose last update was made in december 2007, Estonian risk corresponds to 2 on a 1-to-7 scale (OCSE Category). Low risk.
|Nominal GDP (milions of US$)||23.516||19.268||19.313||19.429|
|Nominal GDP (milions of EEK)||251.493||216.037||212.435||217.528|
|Real GDP growth rate (%)
|Expenditure on GDP (%)|
|Export of goods and services
|Import of goods and services||- 7,9||-27,5||-2,0||2,0|
|Origine of GDP (% reale)|
|Demographics and income
|Population (Millions)||1,3 b||1,3||1,3||1,3|
|Per capita GDP (PPP US$)||30.341b||17.958||17.873||18.333|
|Employment rate (average %)||5,5||13,6||14,0||12,8|
|Fiscal indicators (% of GDP)|
|Revenue in State sector||37,1||38,2||37,7||38,3|
|Expenditure in State sector||39,9||42,2||40,7||40,8|
|Balance State budget
|Prices and financial indicators
|Exchange rate EEK-US$ (media)||10,69||11,21||11,00||11,20|
|Exchange rate EEK-€||15,65||15,65||15,65||15,65|
|Consumer prices (average; %)||10,4||-0,1||0,3||1,2|
|Production prices (average; %)
|Interest rate on loans
|Current accounts (US$ mln)|
|Goods: export fob||12.570||8.555||8.713||9.109|
|Goods: import fob||-15.329||-9.113||-9.556||-9.991|
|Balance of services
|Balance of income
|Account balance transfer
|Current account balance
|International reservers (US$ Billions)|
|Total of Internationa Reserves
a Present, b Estimates of Economist Intelligence Unit, c Forecast of Economist Intelligence Unit