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pre-1940 flag restored by Supreme Soviet in May 1990 - three equal horizontal bands of blue (top), black, and white

Economy ::Estonia

Economy - overview:

Estonia, a 2004 European Union entrant, has a modern market-based economy and one of the highest per capita income levels in Central Europe. Estonia's successive governments have pursued a free market, pro-business economic agenda and have wavered little in their commitment to pro-market reforms. Tallinn's priority has been to sustain high growth rates - on average 8% per year from 2003 to 2007. The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, and Germany. The current government has pursued relatively sound fiscal policies, resulting in balanced budgets and low public debt. Rapid growth, however, has made it difficult to keep inflation and large current-account deficits from soaring, putting downward pressure on the country's currency. The government has not given up on adopting the euro, but has repeatedly postponed its target date. Estonia's economy slowed down markedly and fell sharply into recession in mid-2008, primarily as a result of an investment and consumption slump following the bursting of the real estate market bubble.

GDP (purchasing power parity):

$28.03 billion (2008 est.) country comparison to the world: 109 $29.08 billion (2007 est.)

$27.13 billion (2006 est.)

note: data are in 2008 US dollars

GDP (official exchange rate):

$23.55 billion (2008 est.)

GDP - real growth rate:

−3.6% (2008 est.) country comparison to the world: 215 7.2% (2007 est.)

10% (2006 est.)

GDP - per capita (PPP):

$21,400 (2008 est.) country comparison to the world: 57 $22,100 (2007 est.)

$20,500 (2006 est.)

note: data are in 2008 US dollars

GDP - composition by sector:

agriculture: 2.6%

industry: 29%

services: 68.4% (2008 est.)

Labor force:

693,000 (2008 est.) country comparison to the world: 144

Labor force - by occupation:

agriculture: 4.7%

industry: 33.7%

services: 61.6% (2007)

Unemployment rate:

5.7% (2008 est.) country comparison to the world: 70 4.7% (2007 est.)

Population below poverty line:

5% (2003)

Household income or consumption by percentage share:

lowest 10%: 2.7%

The 2009 CIA World Factbook

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