Economy at a glance
The cornerstones of Estonian development are openness, liberal economic policy and proportional tax system with 0% tax on reinvested profits.
International organisations like World Bank, World Economic Forum, The Heritage Foundation and others have acknowledged Estonian economy as very open and competitive.
- 1st in International Tax Competitiveness Index
- 8th in Index of Economic Freedom 2015 - Wall Street Journal/The Heritage Foundation
- 2nd in Internet Freedom - Freedom House 2015
- 16th in Ease of Doing Business Report 2016 - World Bank
- 30th in Global Competitiveness Report 2015-2016 - World Economic Forum
- 23rd in Corruption Perceptions Index 2015 - Transparency International
Estonia has some of the highest international credit ratings in the region. Standard & Poor: AA-; Moody's: A1; Fitch IBCA: A+.
The structure of Estonian economy is diverse – industry and transport, as well as commerce and different branches of services are all equally important. Due to the available natural resources Estonian economy largely relies on the branches related to the forest and the Estonian energy sector is based on oil shale, a resource quite rare elsewhere in the world.
More than 71% of the Estonian GDP is derived from the service sectors, industrial sectors yield 25% and primary branches (including agriculture) approximately 4% of the overall output.
In 2016 Estonian economy is expected to grow by 2% and the annual growth forecast for the next few years is 2,0%-3,3%.
Estonia is among the leading countries in the Eastern and Central Europe regarding foreign direct investments per capita. As of January 1 2016 Estonia has attracted in total 17,4 billion euro worth of investments of which 26% have been in the financial sector, 19% in real estate activities, 14% in wholesale and retail trade, 13% in manufacturing and 7% into professional, scientific and technical activities.
As much as 25% of all investments have been made by Swedish companies, 23% by Finnish companies, 10% by Dutch companies and 4% by Norwegian companies.
Estonia is both geographically and economically close to Scandinavia; its main trading partners include Sweden, Finland, Russia, Germany, Latvia and Lithuania.
Machinery and equipment are the most frequently exported commodities, followed by mineral products and agricultural products and food preparations. On the services side, Estonia exports mainly transport services, various travel services and business services.
The structure of import is similar to the structure of export - the biggest share in import is also held by machinery and equipment, followed by mineral products and agricultural products and food preparations. The share of services in Estonian import is ca 19% and mainly transport and travel services are imported.