Economy of Estonia

Economy of Estonia

Central business district of Tallinn
Currency	Euro (EUR, €)
Fiscal year	Calendar year
Trade organisations	EU, WTO and OECD
Country group	Advanced economy[1] High-income economy[2]
Statistics
Population	1,340,068 (1 January 2021)[3]
GDP	$43.5 billion (nominal, 2024)[4] $61.6 billion (PPP, 2024)[4]
GDP rank	101st (nominal, 2023) 110th (PPP, 2023)
GDP growth	−3.0% (2023) −0.5% (2024) 2.2% (2025)[4]
GDP per capita	$31,855 (nominal, 2024)[4] $45,122 (PPP, 2024)[4]
GDP per capita rank	37th (nominal, 2023) 40th (PPP, 2023)
GDP by sector	agriculture: 2.8% industry: 29% services: 68% (2017 est.)[5]
Inflation (CPI)	9.1% (2023) 4.2% (2024) 2.5% (2025)[4]
Population below poverty line	22.5% – income below €756/month (2022)[6] 24.2% at risk of poverty or social exclusion (AROPE 2023)[7]
Gini coefficient	31.8 medium (2023)[8]
Human Development Index	0.899 very high (2022)[9] (31st) 0.835 very high IHDI (24th) (2022)[9]
Corruption Perceptions Index	73 out of 100 points (2023)[10] (13th)
Labour force	693,759 (2019)[11] 82.1% employment rate (2023)[12]
Labour force by occupation	agriculture: 2.7% industry: 20.5% services: 76.8% (2017 est.)[5]
Unemployment	7.8% (July 2020)[13] 23.2% youth unemployment (15 to 24 year-olds; June 2020)[14]
Average gross salary	€2,113, monthly (June, 2024)
Average net salary	€1,630, monthly (December, 2024)
Main industries	engineering, electronics, wood and articles of wood, textiles, information technology, telecommunications
External
Exports	€18.2 billion (2023)[15]
Export goods	Electrical equipment, agricultural products and food, wood and wooden articles, mineral products, transport equipment
Main export partners	Finland 17%  Latvia 12%  Sweden 9%  Lithuania 8%  Germany 7%  Netherlands 4% Others 43% (2023)[15]
Imports	€21.2 billion (2023)[15]
Import goods	Electrical equipment, transport equipment, mineral products, agricultural products and food, mechanical appliances
Main import partners	Finland 15%  Germany 12%  Latvia 11%  Lithuania 10%  Sweden 8%  Netherlands 6% Others 38% (2023)[15]
FDI stock	$27.05 billion (31 December 2017 est.)[5] Abroad: $10.96 billion (31 December 2017 est.)[5]
Current account	$809 million (2017 est.)[5]
Gross external debt	$19.05 billion (31 December 2016 est.)[5]
Public finances
Government debt	8.4% of GDP (2019)[16] €2.4 billion (2019)[16]
Budget balance	€90 million deficit (2019)[16] −0.3% of GDP (2019)[16]
Revenues	38.7% of GDP (2019)[16]
Expenses	39.0% of GDP (2019)[16]
Economic aid	€3.4 billion from European Structural and Investment Funds (2007–2013)[17] €4.46 billion from European Structural and Investment Funds (2014–2020)[18]
Credit rating	Standard & Poor's: AA− Fitch Ratings: A+ Moody's: A1 Scope: A+[19]
Foreign reserves	$345 million (31 December 2017 est.)[5]
All values, unless otherwise stated, are in US dollars.

The economy of Estonia is rated advanced by the World Bank, i.e. with high quality of life and advanced infrastructure relative to less industrialized nations. Estonia is a member of the European Union, eurozone and OECD^[20] The economy is heavily influenced by developments in the Finnish and Swedish economies.^[21]

After Estonia restored its independence in 1991 and became a market economy, it emerged as a pioneer in the global economy. Estonia styled itself as a bridge between East and West, adopting significant economic reforms and technological innovations. In 1992, the country adopted the Estonian kroon as its currency, this stabilised the economy. In 1994, it became the first country in the world to adopt a flat tax, with a rate of 26% regardless of personal income. Estonia received more foreign investment, per person, in the late 1990s than any other country in Central and Eastern Europe. The country has been catching-up with the EU-15 - the richer European countries. Its GDP per capita grew from 35% of the EU-15 average in 1996 to 65% in 2007, similar to Central European countries.^[22] Income per person was $49,000 in 2023 according to the IMF; this was between Poland and Portugal, but below Spain.^[23]

For Estonia, the 2007–2008 financial crisis was easier to weather, because its budget has consistently been kept balanced, and this meant public debt relative to GDP remained the lowest in Europe. The economy recovered in 2010.^[24] In January 2011, Estonia adopted the euro, joining the eurozone.^[25] Estonia has demonstrated resilience, with a strong service sector, particularly in IT due to the Tiigrihüpe project, and advanced e-government services. Estonia's commitment to a circular economy, innovation and its success in maintaining a balanced budget, low public debt, and a competitive tax system have positioned it as a model of economic reform and growth in post-Soviet Europe.