View source for Economy of Estonia

{{Short description|none}}
{{Use dmy dates|date=February 2020}}
{{Infobox economy
| country = Estonia
| image = Tallinna südalinna panoraam (2021).jpg
| caption = [[Kesklinn, Tallinn|Central business district of Tallinn]]
| currency = [[Euro]] (EUR, €)
| fixed exchange = 
| year = Calendar year
| organs = [[European Union|EU]], [[World Trade Organization|WTO]] and [[OECD]]
| group = {{plainlist|
*[[Developed country|Advanced economy]]<ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/groups-and-aggregates |title=Groups and Aggregates Information |publisher=[[International Monetary Fund]] |website=IMF.org}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
| population = {{increase}} 1 369 285 (1 January 2021)<ref>{{cite web |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00001&plugin=1 |title=Population on 1 January |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=13 July 2020}}</ref>
| gdp = {{plainlist|
*$43.5 billion (nominal, 2024)<ref name="IMFWEOEE">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=939,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,&sy=2022&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=World Economic Outlook database: April 2024|publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
*$61.6 billion ([[Purchasing power parity|PPP]], 2024)<ref name="IMFWEOEE" />}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|101st (nominal, 2023)]]
*[[List of countries by GDP (PPP)|110th (PPP, 2023)]]}}
| growth = {{plainlist|   
*−3.0%&nbsp;(2023)
*−0.5%&nbsp;(2024)
*2.2%&nbsp;(2025)<ref name="IMFWEOEE" />}}
| per capita = {{plainlist|
*$31,855 (nominal, 2024)<ref name="IMFWEOEE" />
*$45,122 (PPP, 2024)<ref name="IMFWEOEE" />}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|37th (nominal, 2023)]]
*[[List of countries by GDP (PPP) per capita|40th (PPP, 2023)]]}}
| cpi = {{increase}} 73 out of 100 points (2023)<ref name="ti_2023">{{cite web |url=https://www.transparency.org/en/cpi/2023 |date=30 January 2024 |title=Corruption Perceptions Index |website=[[Transparency International]] |access-date=15 July 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130062042/https://www.transparency.org/en/cpi/2023 |url-status=live }}</ref> ([[Corruption Perceptions Index#Ranking over Time|13th]])
| components = 
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 2.8%
*[[Secondary sector of the economy|industry]]: 29%
*[[Tertiary sector of the economy|services]]: 68% 
*(2017 est.)<ref name="CIAWFEN">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/estonia/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=3 March 2019}}</ref>}}
| inflation = {{plainlist|
*9.1% (2023)
*4.2% (2024)
*2.5% (2025)<ref name="IMFWEOEE" />}}
| poverty = {{plainlist|
*{{decreasePositive}} 20.2% – income below €807/month (2023)<ref>{{cite web |title=At-risk-of-poverty rate |publisher=Statistics Estonia |url=https://www.stat.ee/en/avasta-statistikat/valdkonnad/heaolu/sotsiaalne-torjutus-ja-vaesus/risk-poverty-rate |access-date=16 February 2025}}</ref>
*{{decreasePositive}} 24.2% at risk of poverty or social exclusion (AROPE 2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/tepsr_lm410/default/table?lang=en |title=People at risk of poverty or social exclusion |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat}}</ref>}}
| gini = {{decreasePositive}} 31.8 {{color|darkorange|medium}} (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/tessi190/default/table?lang=en |title=Gini coefficient of equivalised disposable income – EU-SILC survey |publisher=[[World Bank]] |website=ec.europa.eu}}</ref>
| hdi = {{plainlist|
*{{increase}} 0.899 {{color|darkgreen|very high}} (2022)<ref name="eehdi">{{Cite web |date=13 March 2024 |title=Human Development Report 2023/2024 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20240313164319/https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf |archive-date=13 March 2024 |access-date=1 May 2024 |publisher=[[United Nations Development Programme]] |language=en}}</ref> ([[List of countries by Human Development Index|31st]])
*{{increase}} 0.835 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI (24th)]] (2022)<ref name="eehdi"/>}}
| labor = {{plainlist|
*{{increase}} 755414 (2023)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=EE |title=Labor force, total – Estonia |publisher=[[World Bank]] |website=data.worldbank.org |access-date=15 November 2019}}</ref>
*{{increasePositive}} 82.1% employment rate (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Employment_-_annual_statistics |title=Employment rate by sex, age group 20-64 |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=20 July 2024}}</ref>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 2.7%
*[[Secondary sector of the economy|industry]]: 20.5%
*[[Tertiary sector of the economy|services]]: 76.8% 
*(2017 est.)<ref name="CIAWFEN" />}}
| unemployment = {{plainlist|
*{{decreasePositive}} 7.8% (July 2020)<ref>{{cite web |url=https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=une_rt_m&lang=en |title=Unemployment by sex and age – monthly average |publisher=[[Eurostat]] |website=appsso.eurostat.ec.europa.eu/eurostat |access-date=4 October 2020}}</ref>
*{{increaseNegative}} 23.2% youth unemployment (15 to 24 year-olds; June 2020)<ref>{{cite web |title=Unemployment rate by age group |url=https://data.oecd.org/chart/6596 |website=data.oecd.org |publisher=[[OECD]] |access-date=7 September 2020}}</ref>}}
| industries = engineering, electronics, wood and articles of wood, textiles, information technology, telecommunications
| average gross salary = [[List of European countries by average wage|€2,269]], monthly (December, 2024)
| average net salary = [[List of European countries by average wage|€1,706]], monthly (December, 2024)
| exports = {{decrease}} €18.2 billion (2023)<ref name="foreign">{{cite web |title=Foreign trade decreased significantly in 2023 |publisher=Statistics Estonia |url=https://www.stat.ee/en/news/foreign-trade-decreased-significantly-2023 |date=9 February 2024 |access-date=29 October 2024}}</ref>
| export-goods = Electrical equipment, agricultural products and food, wood and wooden articles, mineral products, transport equipment
| export-partners = {{ublist|{{flag|Finland}} 17%| {{flag|Latvia}} 12%| {{flag|Sweden}} 9%| {{flag|Lithuania}} 8%| {{flag|Germany}} 7%| {{flag|Netherlands}} 4%| Others 43%| (2023)<ref name="foreign" />}}
| imports = {{decrease}} €21.2 billion (2023)<ref name="foreign" />
| import-goods = Electrical equipment, transport equipment, mineral products, agricultural products and food, mechanical appliances
| import-partners = {{ublist|{{flag|Finland}} 15%| {{flag|Germany}} 12%| {{flag|Latvia}} 11%| {{flag|Lithuania}} 10%| {{flag|Sweden}} 8%| {{flag|Netherlands}} 6%| Others 38%| (2023)<ref name="foreign" />}}
| current account = {{increase}} $809 million (2017 est.)<ref name="CIAWFEN" />
| gross external debt = {{increaseNegative}} $19.05 billion (31 December 2016 est.)<ref name="CIAWFEN" />
| FDI = {{plainlist|
*{{increase}} $27.05 billion (31 December 2017 est.)<ref name="CIAWFEN" />
*{{increase}} Abroad: $10.96 billion (31 December 2017 est.)<ref name="CIAWFEN" />}}
| debt = {{plainlist|
*{{steady}} 8.4% of GDP (2019)<ref name="1st Notif">{{cite web |title=Euro area and EU27 government deficit both at 0.6% of GDP|url=https://ec.europa.eu/eurostat/documents/2995521/10294648/2-22042020-AP-EN.pdf |website=ec.europa.eu/eurostat |publisher=Eurostat |access-date=28 April 2020}}</ref>
*{{increase}} €2.4 billion (2019)<ref name="1st Notif"/>}}
| revenue = 38.7% of GDP (2019)<ref name="1st Notif"/>
| expenses = 39.0% of GDP (2019)<ref name="1st Notif"/>
| balance = {{plainlist|
*€90 million deficit (2019)<ref name="1st Notif"/>
*−0.3% of GDP (2019)<ref name="1st Notif"/>}}
| aid = {{plainlist|
*€3.4 billion from [[Regional policy of the European Union|European Structural and Investment Funds]] (2007–2013)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/et_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20171225203037/https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/et_en.pdf |archive-date=25 December 2017 |url-status=live }}</ref>
*€4.46 billion from [[Regional policy of the European Union|European Structural and Investment Funds]] (2014–2020)<ref>{{Cite web |url=http://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_ee_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20170420135423/http://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_ee_en.pdf |archive-date=20 April 2017 |url-status=live }}</ref>}}
| credit = {{plainlist|
*[[Standard & Poor's]]: AA−
*[[Fitch Ratings]]: A+
*[[Moody's]]: A1
*Scope: A+<ref>{{cite news | title=Scope downgrades Estonia to A+ and revises the Outlook to Stable|publisher=Scope Ratings |url=https://www.scoperatings.com/ratings-and-research/rating/EN/176789|access-date=19 April 2024}}</ref>}}
| reserves = {{decrease}} $345 million (31 December 2017 est.)<ref name="CIAWFEN" />
}}

The '''economy of Estonia''' is rated [[advanced economy|advanced]] by the [[World Bank Group|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]], the [[eurozone]], and the [[OECD]].<ref>{{cite web |title=World Economic and Financial Surveys / World Economic Outlook |work=Database—WEO Groups and Aggregates Information |publisher=[[International Monetary Fund]] |date=April 2011 |url= http://www.imf.org/external/pubs/ft/weo/2011/01/weodata/groups.htm#ae |access-date=21 August 2012}}</ref> The economy is heavily influenced by developments in the [[Economy of Finland|Finnish]] and [[Economy of Sweden|Swedish]] economies.<ref>{{Cite web|url=https://www.seb.ee/foorum/majanduskeskkond/kuidas-laheb-soome-majandusel|title=Kuidas läheb Soome majandusel? &#124; SEB|access-date=4 November 2017|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730230932/https://www.seb.ee/foorum/majanduskeskkond/kuidas-laheb-soome-majandusel|url-status=dead}}</ref>

After Estonia [[Revolutions of 1989#Economic reforms|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.<ref name="heritage" /> GDP per capita (current US$) was $30,133 in 2023 according to the [[World Bank]]; this was between the [[Czech Republic]] and [[Bahrain]], but below [[Saudi Arabia]].<ref>{{cite web |title=GDP per capita (current US$) |publisher=[[World Bank]] |url=https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?most_recent_value_desc=true |access-date=6 January 2020}}</ref>

For Estonia, the [[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.<ref name="Kattel_and_Raudla" /> In January 2011, Estonia adopted the [[euro]], joining the [[eurozone]].<ref name="HS" /> 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.

==History==
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===Early history===
Until the early 13th century, the territory that is now known as Estonia was independent. The economy was largely an agricultural one, but Estonia being a country with a long coastline, there were also many maritime activities. Autonomous development was brought to an end by the [[Northern Crusades]] undertaken by the King of Denmark, the German Livonian and the Teutonic military orders. The Estonian world was transformed by military conquest. The war against the invaders lasted from 1208 to 1227. The last Estonian county to fall was the island of Saaremaa in 1261.<ref>{{cite web |title=History of Estonia |publisher=Britannica|url=https://www.britannica.com/place/Estonia/History|access-date=29 January 2021}}</ref>

Thereafter, through many centuries until [[World War I|WWI]], Estonian agriculture consisted of native peasants working large feudal-type estates held by ethnic [[Baltic Germans|German]] [[landlord]]s.--> 
In the decades prior to [[World War I]] and independence, during the Czarist rule a rather large industrial sector developed in Estonia. For example, the [[Kreenholm Manufacturing Company]] was then the world's largest [[cotton mill]].

===Independence===
After declaring independence in 1918, the [[Estonian War of Independence]] and the subsequent signing of the [[Treaty of Tartu (Russian–Estonian)|Treaty of Tartu]] in 1920, the new Estonian state inherited a ruined post-war economy and an inflated ruble currency. Despite considerable hardship, dislocation, and unemployment, Estonia spent the first decade of independence entirely transforming its economy. In 1918, The Czarist ruble was replaced by the [[Estonian mark]], which was in circulation until 1927. By 1929, a stable currency, the [[Estonian kroon|kroon]], had been established. It was issued by the [[Bank of Estonia]], the country's [[central bank]]. Compensating the German landowners for their holdings, the government confiscated the estates and divided them into small farms, which subsequently formed the basis of Estonian prosperity. Trade focused on the local market and the West, particularly Germany and the United Kingdom. Only 3% of all commerce was with the USSR.

Historically, Estonia's economy was agricultural, modernising significantly [[Estonian War of Independence|post-independence from Russia in 1918]]. There was a notable knowledge sector in [[Tartu]] and expanding industrial sector, exemplified by the [[Kreenholm Manufacturing Company]]. [[Western Europe]]an markets were familiar with Estonian dairy, with the main trade partners being Germany and the UK; only 3% of commerce was with the neighbouring [[USSR]]. Estonia and [[Finland]] had a similar standard of living.<ref name="maddison185">{{Cite book |last=Maddison |first=Angus |title=The world economy |publisher=OECD Publishing |year=2006 |isbn=92-64-02261-9 |page=185}}</ref> USSR's annexation of Estonia in 1940 and destruction during World War II crippled the economy. Post-war [[Sovietization]] continued, with the integration of Estonia's economy into the USSR's [[Command economy|centrally-planned]] structure.

===Soviet occupation===
The USSR's forcible annexation of Estonia in 1940 and the ensuing [[Nazism|Nazi]] and [[Soviet Union|Soviet]] destruction during [[World War II]] crippled the Estonian economy. Post-war Soviet occupation and Sovietisation of life continued with the integration of Estonia's economy and industry into the USSR's centrally planned structure. More than 56% of Estonian farms were [[collective|collectivised]] in the month of April 1949 alone after [[Soviet deportations from Estonia|mass deportations to Siberia]] the previous month. Moscow expanded on those Estonian industries which had locally available raw materials, such as [[oil shale]] mining and phosphorites.

===Restoration of independence, modernisation and liberalisation===
[[File:Tln1.jpg|thumb|[[Maakri]] has become the [[central business district]] of Tallinn in the 21st century.]]
[[File:GDP_per_capita_Baltics.svg|thumb|right|Real GDP per capita development of Estonia, Latvia and Lithuania]]
After Estonia [[Revolutions of 1989#Economic reforms|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 June 1992, Estonia replaced the [[Russian ruble|ruble]] with its own freely convertible currency, the [[Estonian kroon|kroon]]. A [[currency board]] was created and the new currency was pegged to the German Mark at the rate of 8 Estonian kroons per [[Deutsche Mark]]. When Germany introduced the [[euro]] the peg was changed to 15.6 kroons per euro.

In 1994, it became the first country in the world to adopt a [[flat tax]], with a rate of 26% regardless of personal income.<ref>{{cite journal | url=https://www.jstor.org/stable/27740067 | jstor=27740067 | title=The Spread of the Flat Tax in Eastern Europe: A Comparative Study | last1=Evans | first1=Anthony John | last2=Aligica | first2=Paul Dragos | journal=Eastern European Economics | date=16 March 2024 | volume=46 | issue=3 | pages=49–67 | doi=10.2753/EEE0012-8775460303 | url-access=subscription }}</ref> Between 2005 and 2008, this was reduced to 21% over several steps.<ref name="heritage">{{cite web |last=Laar |first=Mart |author-link=Mart Laar |title=The Estonian Economic Miracle |publisher=[[The Heritage Foundation]] |date=7 August 2007 |url=http://www.heritage.org/Research/WorldwideFreedom/bg2060.cfm |access-date=21 August 2012 |archive-date=3 March 2010 |archive-url=https://web.archive.org/web/20100303174230/http://www.heritage.org/Research/WorldwideFreedom/bg2060.cfm |url-status=unfit }}</ref>

In early 1992, both liquidity problems and structural weakness stemming from the communist era precipitated a banking crisis. As a result, effective bankruptcy legislation was enacted and privately owned; well-managed banks emerged as market leaders.<ref name="WorldBank1993">{{cite book |title=Estonia: The Transition to a Market Economy |publisher=World Bank |year=1993 |location=Washington, D.C. |isbn=978-0-8213-2351-9 |pages=45–50}}</ref> The fully electronic [[Tallinn Stock Exchange]] opened in early 1996, and was purchased by Finland's [[Helsinki Stock Exchange]] in 2001. Estonia joined the World Trade Organization in 1999.

From the early 2000s to the latter part of that decade, the economy experienced considerable growth. In 2000, Estonian GDP grew by 6.4%. After accession to the [[European Union]] in 2004, double-digit growth was soon observed. GDP grew by 8% in 2007 alone. Increases in labor costs, the imposition of tax on tobacco, alcohol, electricity, fuel, gas, and other external pressures (growing prices of oil and food on the global market) inflated prices in 2009.<ref name="IMF2011">{{cite book |title=Estonia: A Giant of the Baltics |publisher=International Monetary Fund |year=2011 |location=Washington, D.C. |isbn=978-1-61635-145-8 |pages=12–18}}</ref>

===2008 financial crisis, response and recovery===
[[File:Real GDP growth in Estonia, 2002-2012.png|thumb|300px|Real GDP growth in Estonia, 2002–2012]]
The [[2008 financial crisis]] had a deep effect on the economy, primarily as a result of an investment and consumption slump, that followed the burst of the real estate market bubble that had been building up. In December 2008, Estonia became a donor country to the [[IMF]]-led rescue package for [[Latvia]]. In response to the crisis, the [[Andrus Ansip's second cabinet|Ansip government]] opted for fiscal consolidation and retrenchment by maintaining fiscal discipline and a balanced budget in combination with austerity packages: The government increased taxes, and reduced public spending by slashing expenditures and public salaries across the board.<ref name="Kattel_and_Raudla" />

After a long period of very high growth of GDP, the GDP of Estonia decreased. In the first quarter 2008, GDP grew only 0.1%, and then decreased: negative growth was −1.4% in the 2nd quarter, a little over −3% (on a year-to-year basis) in the 3rd quarter, and −9.4% in the 4th quarter of that year.<ref name="BBN_20090609">{{cite news |last=Tubalkain-Trell |first=Marge |title=Estonian Economy Fell 15.1 pct in Q1 |publisher=Baltic Business News |date=9 June 2009 |url=http://www.bbn.ee/?PublicationId=5e575e3c-7f5b-40c6-9a06-b3e53fb5d67b |access-date=21 August 2012 |archive-date=11 August 2014 |archive-url=https://web.archive.org/web/20140811214940/http://www.bbn.ee/?PublicationId=5e575e3c-7f5b-40c6-9a06-b3e53fb5d67b |url-status=dead }}</ref>

The government made a supplementary negative budget, which was passed by the [[Riigikogu]]. The revenue of the budget was decreased for 2008 by EEK 6.1 billion and the expenditure by EEK 3.2 billion.<ref>{{cite web |title=Government approves supplementary budget for 2008 |publisher=[[Ministry of Finance (Estonia)|Ministry of Finance of the Republic of Estonia]] |date=15 May 2008 |url=http://www.fin.ee/?id=80290 |access-date=21 August 2012}}</ref> A current account-deficit was extant, but began to shrink in late 2008. In 2009, the economy further contracted by 15% in the first quarter.<ref name="BBN_20090609" /> Low domestic and foreign demand depressed the economy's overall output.<ref name="reuters-2009-06-09">{{cite news |last=Mardiste |first=David |title=Estonian Economy Contracts Sharply in First Quarter |agency=[[Reuters]] |date=9 June 2009 |url= http://www.forexpros.com/news/forex-news/estonian-economy-contracts-sharply-in-first-quarter-61196 |access-date=21 August 2012}}</ref> The economy's 34% industrial production drop was the sharpest decrease in industrial production in the [[European Union]].<ref>{{cite news |last=Tubalkain-Trell |first=Marge |title=Estonian Industrial Production Fell Most in EU |publisher=Baltic Business News |date=12 June 2009 |url=http://www.bbn.ee/?PublicationId=3259772f-4391-4a3a-92d7-fa7eb18f6a02 |access-date=21 August 2012 |archive-date=11 August 2014 |archive-url=https://web.archive.org/web/20140811214951/http://www.bbn.ee/?PublicationId=3259772f-4391-4a3a-92d7-fa7eb18f6a02 |url-status=dead }}</ref> Estonia was one of the five worst-performing economies in the world in terms of annual growth,<ref>{{cite web |title=Country Comparison – National product real growth rate |work=The World Factbook |publisher=CIA |date=2009 |url=https://www.cia.gov/library/publications/the-world-factbook/rankorder/2003rank.html?countryName=Estonia&countryCode=en&regionCode=eu&rank=209#en |access-date=26 April 2010 |archive-date=7 July 2014 |archive-url=https://web.archive.org/web/20140707082719/https://www.cia.gov/library/publications/the-world-factbook/rankorder/2003rank.html?countryName=Estonia&countryCode=en&regionCode=eu&rank=209#en |url-status=dead }}</ref> and had one of the highest rates of unemployment in the EU, which rose from 4% in May 2008 to 16% in May 2009.<ref>{{cite magazine |last=Zumbrun |first=Joshua |title=In Pictures: The World's Hardest-Hit Economies |magazine=[[Forbes]] |url= https://www.forbes.com/2009/07/08/economics-iceland-ireland-business-beltway-countries_slide_4.html |date=2009-07-08}}</ref>

In July 2009, the [[value-added tax]] was increased from 18% to 20%.<ref>{{cite news |last=Tubalkain-Trell |first=Marge |title=MPs approve plan to increase VAT rate to 20 pct |publisher=Baltic Business News |date=18 June 2009 |url= http://bbn.ee/?PublicationId=87f66124-06d2-4a65-bc7b-49ccc6d69dfc |access-date=21 August 2012}}</ref> The recorded budget deficit for 2009 was just 1.7% of GDP.<ref name="Kattel_and_Raudla">{{Citation |last1=Kattel |first1=Rainer |last2=Raudla |first2=Ringa |title=Why Did Estonia Choose Fiscal Retrenchment after the 2008 Crisis? |work=Journal of Public Policy |date=August 2011 |url= https://www.researchgate.net/publication/231828912 |access-date=2019-02-09}}</ref> The result was, that Estonia was one of only five EU countries in 2009 that met the Maastricht criteria for debt and deficit, and had the third-lowest deficit after Luxembourg and Sweden; Estonia did not ask for support from the [[International Monetary Fund|IMF]]. Despite the third-largest drop in GDP, the country had the lowest budget deficit and lowest public debt among Central and Eastern European countries. In 2009, the Estonian economy began to rebound, and economic growth resumed in the second half of 2010. The country's unemployment rate dropped significantly to pre-recession levels.<ref name="stat_unemployment">{{cite web |title=Töötuse määr |language=et |trans-title=Unemployment rate |publisher=Statistics Estonia |year=2019 |url=https://www.stat.ee/stat-tootuse-maar |access-date=2019-02-09 |archive-date=9 February 2019 |archive-url=https://web.archive.org/web/20190209182011/https://www.stat.ee/stat-tootuse-maar |url-status=dead }}</ref> To top it off, Estonia was granted permission in 2010 to join the eurozone in 2011.<ref name="Kattel_and_Raudla" />

===Joining the euro===
Before joining the eurozone, the [[Estonian kroon]] had been pegged to the euro at a rate of 15.64664 EEK to one euro; before then, the kroon was pegged to the German mark at approximately 8 EEK to 1 DEM.

The design of [[Estonian euro coins]] was finalized in late 2004.<ref name="Tere_euro">{{cite web |title=The Estonian euro coin |website=Tere Euro |publisher=[[Bank of Estonia]] |date=2011-07-11 |url=http://euro.eesti.ee/EU/Prod/Euroveeb/application/controllers/handleSessions8cc5.html?lang=en&oid=11258 |access-date=2019-02-09 |archive-date=24 February 2021 |archive-url=https://web.archive.org/web/20210224161646/http://euro.eesti.ee/EU/Prod/Euroveeb/application/controllers/handleSessions8cc5.html?lang=en&oid=11258 |url-status=dead }}</ref> Estonia's journey towards the euro took longer than originally projected, owing to the inflation rate continually being above the required 3% before 2010,<ref>{{cite web |title=Tarbijahinnaindeksi muutus |language=et |trans-title=Consumer-price index change |publisher=Statistics Estonia |year=2019 |url=https://www.stat.ee/stat-tarbijahinnaindeksi-muutus |access-date=2019-02-09 |archive-date=9 February 2019 |archive-url=https://web.archive.org/web/20190209124006/https://www.stat.ee/stat-tarbijahinnaindeksi-muutus |url-status=dead }}</ref> which prevented the country from fulfilling the entry criteria. The country originally planned to adopt the euro on 1 January 2007 and officially changed its target date twice: first to 1 January 2008, and later to 1 January 2011.<ref name="HS">{{cite news |title=Alcohol and tobacco tax to rise in Estonia next year |location=Finland |newspaper=[[Helsingin Sanomat]] |date=25 May 2007 |url= http://www.hs.fi/english/article/Alcohol+and+tobacco+tax+to+rise+in+Estonia+next+year/1135227499218 |access-date=1 January 2009}}</ref>

On 12 May 2010, the European Commission announced that Estonia had met all criteria to join the eurozone.<ref>{{cite news |title=Estonia ready for euro |url=http://ec.europa.eu/news/economy/100512_1_en.htm |publisher=[[European Commission]] |date=12 May 2010 |access-date=12 May 2010}}</ref> On 8 June 2010, EU finance ministers.<ref>[http://www.actionforex.com/analysis/daily-forex-fundamentals/estonia-to-join-euro-1-january-2011-20100608115064/ Estonia to Join Euro 1 January 2011] {{webarchive |url= https://web.archive.org/web/20100611052826/http://www.actionforex.com/analysis/daily-forex-fundamentals/estonia-to-join-euro-1-january-2011-20100608115064/ |date=11 June 2010}}</ref> In July 2010, Estonia received the final approval from ECOFIN to adopt the euro onwards from 1 January 2011; on that date Estonia became the 17th [[eurozone]] member state and circulated alongside the [[Estonian kroon|kroon]] until 14 January 2011.<ref name="reuters-2011-01-01">{{cite news |last=Mardiste |first=David |title=Estonia joins crisis-hit euro club |date=1 January 2011 |work=[[Reuters]] |url= https://www.reuters.com/article/idUSTRE6BU0S720110101 |access-date=21 August 2012}}</ref> With that, Estonia became one of the first post-Soviet states to join the [[eurozone]].<ref name="HS" />

In August 2011, [[Standard & Poor's]] raised Estonia's credit rating from A to {{nowrap begin}}AA-.{{nowrap end}} Among various factors, S&P cited as contributing to its decision was confidence in Estonia's ability to "sustain strong economic growth."<ref>{{cite news |last=Ummelas |first=Ott |title=Estonia's Rating Raised to AA- by S&P on Economic Growth, Strong Finances |publisher=[[Bloomberg L.P.|Bloomberg]] |date=9 August 2011 |url= https://www.bloomberg.com/news/2011-08-09/estonia-s-rating-raised-to-aa-by-s-p-on-growth-finances-1-.html |access-date=11 August 2011 |quote=Estonia's credit rating was raised by Standard & Poor's Ratings to the second-highest level in eastern Europe on the Baltic country's strong economic growth and solid public finances.}}</ref> Estonia's GDP growth rate in 2011 was above 8%, despite having negative population growth.<ref>{{cite web |title=Unemployment in Europe (monthly) |format=The chart shows data for the EU, Estonia, and Finland |agency=[[Eurostat]] |work=[[Google Public Data Explorer]] |url= https://www.google.com/publicdata/explore?ds=z8o7pt6rd5uqa6_&ctype=l&strail=false&bcs=d&nselm=h&met_y=unemployment_rate&fdim_y=seasonality:sa&scale_y=lin&ind_y=false&rdim=country_group&idim=country_group:eu:non-eu&idim=country:fi:ee&ifdim=country_group&tstart=948657600000&tend=1366747200000&hl=en&ind=false#!ctype=l&strail=false&bcs=d&nselm=h&met_y=unemployment_rate&fdim_y=seasonality:sa&scale_y=lin&ind_y=false&rdim=country_group&idim=country_group:eu:non-eu&idim=country:fi:ee&ifdim=country_group&tstart=948664800000&tend=1374613200000&hl=en_US&dl=en_US&ind=false |access-date=2014-01-24}}</ref><ref>{{cite web |title=GDP Growth Rate |agency=[[World Bank]] |work=Google Public Data |url= https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&ctype=l&strail=false&bcs=d&nselm=h&met_y=ny_gdp_mktp_kd_zg&scale_y=lin&ind_y=false&rdim=region&idim=country:EST&ifdim=region&tdim=true&tstart=895950000000&tend=1306180800000&ind=false |access-date=24 May 2013}}</ref>

The Estonian economy was hit by the [[COVID-19 recession]] before bouncing back with an 8.6% rise in GDP in 2021,<ref>{{cite web |title=Economic growth will slow |url=https://www.eestipank.ee/en/press/economic-growth-will-slow-01032022 |date=1 March 2022}}</ref> this was followed by the economic effect of the [[Russian invasion of Ukraine]] in February 2022 resulting in a fall in GDP of 1.3% in 2022 and high inflation which hit 24% <ref>{{cite web |title=Eurostat: Inflation in Estonia 24.2 percent in September |url=https://news.err.ee/1608734683/eurostat-inflation-in-estonia-24-2-percent-in-september |date=30 September 2022}}</ref> before falling to single digits in 2023.

==The economy today==
"Since reestablishing independence, Estonia has styled itself as the gateway between East and West and pursued economic reform and integration with the West."<ref>{{Cite web|title=Estonia (03/04)|url=https://2009-2017.state.gov/outofdate/bgn/estonia/31860.htm|access-date=2021-07-21|website=U.S. Department of State}}</ref> Estonia's market reforms put it among the economic leaders in the former [[COMECON]] area.{{Citation needed|date=January 2019}} A balanced budget, almost non-existent [[public debt]], flat-rate [[income tax]], [[free trade]] regime, adoption of the [[euro]], competitive commercial banking sector, hospitable environment for foreign investment, innovative [[e-Services]] and mobile-based services are hallmarks of Estonia's free-market-based economy.{{Citation needed|date=January 2019}}

The [[privatisation]] of state-owned firms is virtually complete, with only the port and main power plants remaining in government hands.{{Citation needed|date=January 2019}} The constitution requires a balanced budget,<ref name="Andmevara 1918 h714">{{cite web | last=Andmevara | first=AS | title=The Constitution of the Republic of Estonia–Riigi Teataja | website=Avaleht–Riigi Teataja | date=February 24, 1918 | url=https://www.riigiteataja.ee/en/eli/521052015001/consolide | access-date=February 29, 2024}}</ref> and the protection afforded by Estonia's intellectual property laws is similar to that of the EU.<ref name="WIPO_2022">{{cite report |author=World Intellectual Property Organization |date=2022 |title=Intellectual property statistical country profile: Estonia |url=https://www.wipo.int/edocs/statistics-country-profile/en/ee.pdf |publisher=European Climate, Infrastructure and Environment Executive Agency |access-date=2024-02-29}}</ref><ref name="International Property Rights Index z373">{{cite web | title=Estonia | website=International Property Rights Index | url=https://www.internationalpropertyrightsindex.org/country/estonia | access-date=February 29, 2024}}</ref><ref name="International Trade Administration 2020 w052">{{cite web | title=Protecting Intellectual Property | website=International Trade Administration | date=October 15, 2020 | url=https://www.trade.gov/country-commercial-guides/estonia-protecting-intellectual-property | access-date=February 29, 2024}}</ref> Near-ideal conditions for the banking sector exist. Foreigners are not restricted from buying bank shares or acquiring majority holdings.{{Citation needed|date=January 2019}}

In 2013, the average monthly gross wage in Estonia was €980 (US$1,330).<ref name="stat.ee">{{cite web |title=Most requested statistics |work=Main indicators |publisher=[[Statistics Estonia]] |date=30 September 2013 |url=http://www.stat.ee/main-indicators |access-date=4 October 2013 |archive-date=23 November 2012 |archive-url=https://web.archive.org/web/20121123153505/http://www.stat.ee/main-indicators |url-status=dead }}</ref> This figure has grown consistently to €2,065 (US$2,217) as of December 2023.<ref>{{Cite web|title=Average monthly gross wages and salaries {{!}} Statistikaamet|url=https://www.stat.ee/en/find-statistics/statistics-theme/work-life/wages-and-salaries-and-labour-costs/average-monthly-gross-wages-and-salaries|access-date=2024-05-08|website=www.stat.ee|language=en}}</ref>

Estonia offers unique tax conditions for businesses, where the tax on undistributed profits is 0%. This allows companies that reinvest their profits into development to avoid tax obligations and allocate more funds for growth and expansion.<ref>{{Cite web |title=Company Registration in Estonia {{!}} Your Quick Start in the EU |url=https://adamsmith.lt/en/company-registration/company-registration-in-estonia/ |access-date=2024-11-07 |website=AdamSmith |language=en-US}}</ref> In 2024, Estonia holds the first place in the [https://taxfoundation.org/research/all/global/2023-international-tax-competitiveness-index/ International Tax Competitiveness Index] and on a permanent basis is taking top positions in the [[Economic Freedom Index]] (8th place) and in the [[Ease of doing business index|Ease of Doing Business Index]] (18th place).<ref>{{Cite web |last=Firma |first=Eesti |title=Company Formation in Estonia {{!}} Start a Business in the EU |url=https://www.eestifirma.ee/en/service/company-formation/ |access-date=2024-08-28 |website=Eesti Firma |language=en-US}}</ref>

==Projections and circular economy==
In 2011, according to projections made by [[Centre d'Etudes Prospectives et d'Informations Internationales|CEPII]]<ref>{{cite web |title=CEPII Country Profiles: Estonia |url=http://visualdata.cepii.fr/CountryProfiles/en/?country=Estonia |website=CEPII |access-date=4 October 2020}}</ref> by 2050, Estonia could become the most productive country in the EU, after Luxembourg, and so join the top five most productive nations in the world.<ref>{{cite web |title=The Great Shift: Macroeconomic projections for the world economy at the 2050 horizon |publisher=[[Centre d'Etudes Prospectives et d'Informations Internationales|CEPII]] |location=France |date=February 2012 |url= http://www.cepii.fr/anglaisgraph/workpap/pdf/2012/wp2012-03.pdf |access-date=21 August 2012}}</ref>

According to the [[Ministry of the Environment (Estonia)|Ministry of Environment]], Estonia committed to developing a [[circular economy]] strategic document and action plan by 2021.<ref>{{cite web |title=Creating a strategy and action plan for circular economy in Estonia |publisher=ringmajandus.envir.ee |location=Estonia |date=5 July 2019 |url= https://ringmajandus.envir.ee/en/creating-strategy-and-action-plan-circular-economy-estonia|access-date=8 January 2022}}</ref><ref>{{cite web |title=Ringmajanduse strateegia koostamise metoodika väljatöötamine |publisher=ringmajandus.envir.ee |location=Estonia |date=5 July 2019 |url= https://ringmajandus.envir.ee/sites/default/files/Strateegia%20-%20fotod/1.2%20Ringmajanduse%20indikaatorid%20l%C3%B5pparuanne%20050719.pdf|access-date=8 January 2022}}</ref> In March 2020, the Estonian Circular Economy Industries Association, specified that Estonia should consider the new [[European Green Deal]] and principles of circular economy when making investments to recover the economy after Covid.<ref>{{cite web |title=ESTONIAN CIRCULAR ECONOMY INDUSTRIES ASSOCIATION: ESTONIA SHOULD CONSIDER THE GREEN DEAL AND PRINCIPLES OF CIRCULAR ECONOMY WHEN MAKING INVESTMENTS TO RECOVER THE ECONOMY |publisher=EESTI PAKENDIRINGLUS |location=Estonia |date=2020 |url= https://pakendiringlus.ee/en/all_news/estonian-circular-economy-industries-association-estonia-should-consider-the-green-deal-and-principles-of-circular-economy-when-making-investments-to-recover-the-economy/ |access-date=8 January 2022}}</ref>

==Employment participation==
[[File:Estonia Unemployment Rates.png|450px|thumb|Unemployment rate as a percentage of the labor force in [[Estonia]] according to [[Statistics Estonia]]]]

Estonia has around 600,000 employees, yet the country has a shortage of skilled labor, and since skill shortages are experienced everywhere in Europe, the government has increased working visa quota for non-[[European Economic Area|EEA]] citizens, although it has nevertheless been criticized for being inadequate for addressing the shortages.

The [[Late-2000s recession|late-2000s recession in the world]], the near-concurrent local property bust with changes in Estonian legislation to increase [[labour market flexibility]] (making it easier for companies to lay off workers) saw Estonia's unemployment rate shoot up to 18.8% throughout the duration of the crisis, then stabilise to 13.8% by summer 2011, as the economy recovered on the basis of strong exports. Internal consumption, and therefore imports, plummeted; and cuts were made in public finances.<ref>{{cite news |title=Estonian exceptionalism|newspaper=[[The Economist]] |date=14 July 2011 |url= http://www.economist.com/node/18959241 |access-date=11 August 2011}}</ref> Some of the reduction in unemployment has been attributed to some Estonians' emigrating for employment to Finland, the UK, Australia, and elsewhere.<ref>{{Cite web |url=http://ec.europa.eu/social/BlobServlet?docId=8853&langId=en |title=Social Impact of Emigration and Rural-Urban Migration in Central and Eastern Europe |last=Tammaru |first=Tiit |date=April 2012 |website=ec.europa.eu |access-date=2019-02-01}}</ref>

After the recession, the unemployment rate went lower, and throughout 2015 and 2016, the rate stayed near the levels that preceded the economic downturn, staying at just above 6%.<ref name="stat.ee_main_indicators">{{cite web |title=Most requested statistics |publisher=Statistics Estonia |url=http://www.stat.ee/main-indicators |access-date=22 May 2011 |archive-date=23 November 2012 |archive-url=https://web.archive.org/web/20121123153505/http://www.stat.ee/main-indicators |url-status=dead }}</ref> In 2020-2023 the unemployment rate moved around between 5.2% and 7.7%.<ref>{{cite web |title=Estonia Unemployment Rate |url=https://www.ceicdata.com/en/indicator/estonia/unemployment-rate |access-date=19 August 2023}}</ref>

==Sectors==
[[Tallinn]] has emerged as the country's financial center. According to Invest in Estonia, advantages of Estonian financial sector are unbureaucratic cooperation between companies and authorities, and relative abundance of educated people although young educated Estonians tend to emigrate to western Europe for greater income. The largest banks are [[Swedbank]], [[SEB Pank]], and [[Nordea]]. Several IPOs have been made recently on the [[Tallinn Stock Exchange]], a member [[OMX]] system.

The Estonian service sector employs over 60% of workforce. Estonia has a strong information technology (IT) sector, partly due to the [[Tiigrihüpe]] project undertaken in mid-1990s, and has been mentioned as the most "wired" and advanced country in Europe in the terms of [[E-government#Estonia|e-government]].<ref>{{cite magazine |title=Hackers Take Down the Most Wired Country in Europe |magazine=[[Wired (magazine)|Wired]] |date=21 August 2007 |url= https://www.wired.com/politics/security/magazine/15-09/ff_estonia |access-date=21 August 2012}}</ref><ref>{{cite web |title=Government of Estonia homepage |url=http://www.valitsus.ee/ |publisher=[[Government of Estonia]]}}</ref>
<!-- A request to write more about the service sector -->

Farming, which had been forcibly [[collectivization|collectivized]] for decades until the transition era of 1990–1992, has become privatized and more efficient, and the total farming area has increased in the period following Estonia's restoration of independence.<ref>{{cite web |last=Laansalu |first=Ants |title=Crisis in agriculture in the 1990s |work=The rural economy in Estonia until 2001 |publisher=[[Estonica]] |date=9 October 2009 |url= http://www.estonica.org/eng/lugu.html?menyy_id=914&kateg=40&alam=94&leht=3 |access-date=11 August 2011 |url-status=dead |archive-url= https://web.archive.org/web/20070610040459/http://www.estonica.org/eng/lugu.html?menyy_id=914&kateg=40&alam=94&leht=3 |archive-date=10 June 2007 |df=dmy-all}}</ref> The share of agriculture in the gross domestic product decreased from 15% to 3.3% during 1991–2000, while employment in agriculture decreased from 15% to 5.2%.<ref>{{cite press release
 |title        = The biggest share of the gross domestic product of Estonia is continuously created in Harju county
 |publisher    = [[Statistics Estonia]]
 |date         = 26 September 2007
 |url          = http://www.stat.ee/18533
 |access-date  = 11 August 2011
 |archive-date = 8 August 2014
 |archive-url  = https://web.archive.org/web/20140808045815/http://www.stat.ee/18533
 |url-status   = dead
}}</ref>

The [[mining industry]] makes up 1% of the GDP. Mined commodities include oil shale, [[peat]], and industrial minerals, such as [[clay]]s, [[limestone]], [[sand]] and [[gravel]].<ref>{{cite web |last=Kuo |first=Chin S. |title=The Mineral Industries of Estonia, Latvia, and Lithuania |work=U.S. Geological Survey Minerals Yearbook |publisher=U.S. Geological Survey Mineral Resources Program |year=2001 |url= http://minerals.usgs.gov/minerals/pubs/country/2001/enlglhmyb01.pdf |access-date=10 August 2011}}</ref> Soviets created badly polluting industry in the early 1950s, concentrated in the north-east of the country. Socialist economy and military areas left the country highly polluted, and mainly because of [[oil shale industry]] in [[Ida-Virumaa]], [[sulfur dioxide]] emissions per person are almost as high as in the Czech Republic. The coastal seawater is polluted in certain locations, mainly the east. The government is looking for ways to reduce pollution further.<ref>{{cite web |author=Estonian Environment Information Centre |title=Pollution load |work=State of Environment in Estonia on Threshold of XXI Century |publisher=[[UNEP/GRID-Arendal]] – Central & Eastern Europe, Caucasus, and Central Asia |year=2001 |url=http://enrin.grida.no/htmls/estonia/env2001/content/soe/air_2-2.htm |access-date=10 August 2011 |archive-date=8 February 2012 |archive-url=https://web.archive.org/web/20120208000057/http://enrin.grida.no/htmls/estonia/env2001/content/soe/air_2-2.htm |url-status=dead }}<br />Main resource: ''[http://enrin.grida.no/htmls/estonia/env2001/content/soe State of Environment in Estonia on Threshold of XXI Century] {{Webarchive|url=https://web.archive.org/web/20161008145430/http://enrin.grida.no/htmls/estonia/env2001/content/soe |date=8 October 2016 }}''</ref> In 2000, the emissions were 80% smaller than in 1980, and the amount of unpurified wastewater discharged to water bodies was 95% smaller than in 1980.<ref>{{cite web |title=Environment – current issues (section) |work=Estonia – The World Factbook |agency=[[Central Intelligence Agency]] |publisher=[[University of Missouri–St. Louis]] |date=17 May 2005 |url=http://www.umsl.edu/services/govdocs/wofact2005/geos/en.html |access-date=10 August 2011 |archive-date=24 August 2013 |archive-url=https://web.archive.org/web/20130824013731/http://www.umsl.edu/services/govdocs/wofact2005/geos/en.html |url-status=dead }}</ref>

Estonian productivity is experiencing rapid growth, and consequently wages are also rising quickly, with a rise in private consumption of about 8% in 2005. According to Estonian Institute of Economic Research, the largest contributors to GDP growth in 2005 were processing industry, financial intermediation, retailing and wholesale trade, transport and communications.<ref name="companies2006">{{cite web |author=Estonian Institute of Economic Research |title=Top Estonian Enterprises 2006 |publisher=Enterprise Estonia |date=November 2006 |url= http://www.eas.ee/vfs/3282/Edetabel_ENG_2006_trykk_Bh.pdf |url-status=dead |archive-url= https://web.archive.org/web/20070609233211/http://www.eas.ee/vfs/3282/Edetabel_ENG_2006_trykk_Bh.pdf |archive-date=9 June 2007}}</ref>

===Agriculture===
Estonia produced in 2018:

* 450 thousand tons of [[wheat]];
* 347 thousand tons of [[barley]];
* 113 thousand tons of [[rapeseed]];
* 88 thousand tons of [[potato]];
* 78 thousand tons of [[oat]];
* 53 thousand tons of [[pea]];
* 29 thousand tons of [[rye]];

In addition to smaller productions of other agricultural products.<ref>{{cite web| url = http://www.fao.org/faostat/en/#data/QC/| title = Estonia production in 2018, by FAO}}</ref>

{{col-begin}}
{{col-2}}

===Largest companies by revenue===
{| class="wikitable" style="text-align:center"
|-
! Company
! Revenue<br />(EUR millions)<ref name="Top100">{{cite news |last=Oja |first=Tõnis |title=POSTIMEHE ETTEVÕTETE TOP 100. Ülikiire inflatsioon andis ettevõtetele tiivad|language=et |publisher=Postimees|url=https://majandus.postimees.ee/7894519/postimehe-ettevotete-top-100-ulikiire-inflatsioon-andis-suurettevotetele-tiivad|access-date=30 October 2023}}</ref>
|-
|align=left|[[Eesti Energia]]
|2218.2
|-
|align=left|[[Bolt (company)|Bolt Technology]]
|1263.8
|-
|align=left|[[Eesti Gaas]]
|1012.6
|-
|align=left|[[PKN Orlen|Orlen Eesti]]
|958.0
|-
|align=left|[[Tallinna Kaubamaja Group|Tallinna Kaubamaja]]
|862.8
|-
|align=left|[[Tallink|Tallink Grupp]]
|771.4
|-
|align=left|[[Tavid]]
|738.8
|-
|align=left|[[Olerex]]
|637.7
|-
|align=left|[[Alexela]]
|620.4
|-
|align=left|[[Graanul Invest]]
|589.9
|}
{{col-2}}

===Largest companies by profit===
{| class="wikitable" style="text-align:center"
|-
! Company
! Profit<br />(EUR millions)<ref name="Top100" />
|-
|align=left|[[Eesti Energia]]
|215.7
|-
|align=left|[[Swedbank]]
|206.7
|-
|align=left|[[State Forest Management Centre]]
|138.4
|-
|align=left|[[Luminor Bank|Luminor Pank]]
|124.7
|-
|align=left|[[SEB Pank]]
|115.9
|-
|align=left|[[Graanul Invest]]
|111.6
|-
|align=left|[[Eesti Gaas]]
|95.2
|-
|align=left|[[Baltic Maritime Logistics Group]]
|73.3
|-
|align=left|[[LHV Pank|LHV Group]]
|61.4
|-
|align=left|[[Telia Eesti]]
|54.0
|}
{{col-end}}

In 2022, the sector with the highest number of companies registered in Estonia is Services with 144,514 companies followed by Finance, Insurance, and Real Estate and Retail Trade with 47,001 and 26,635 companies respectively.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/estonia | title=Industry Breakdown of Companies in Estonia | website=HitHorizons}}</ref>

==Infrastructure==
{{Main|Transport in Estonia}}
[[File:VKG Ojamaa kaevandus.jpg|thumb|[[Oil shale]] supplies around 70% of the country's primary energy. Oil shale extraction in [[Viru Keemia Grupp|VKG]] Ojamaa mine.]]
Railway transport dominates the cargo sector, comprising 70% of all carried goods, domestic and international. Road transport is the one that prevails in the passenger sector, accounting for over 90% of all transported passengers. 5 major cargo ports offer easy navigational access, deep waters, and good ice conditions. There are 12 airports and 1 [[heliport]] in Estonia. [[Lennart Meri Tallinn Airport]] is the largest airport in Estonia, with 1,73 million passengers and 22,764 tons of cargo (annual cargo growth 119.7%) in 2007. International flight companies such as [[Scandinavian Airlines System|SAS]], [[Finnair]], [[Lufthansa]], [[EasyJet]], and [[Nordic Aviation Group]] provide direct flights to 27 destinations.<ref>[http://www.investinestonia.com/index.php?option=displaypage&Itemid=111&op=page&SubMenu= TRANSPORTATION] {{webarchive|url=https://web.archive.org/web/20070707071918/http://www.investinestonia.com/index.php?option=displaypage&Itemid=111&op=page&SubMenu= |date=7 July 2007 }}, Invest in Estonia</ref>

Approximately 7.5% of the country's [[workforce]] is employed in transportation and the sector contributes over 10% of GDP. Estonia is getting much business from traffic between European Union and Russia, especially oil cargo through Estonian ports. Transit trade's share of GDP is disputed, but many agree that Russia's increased hostility is decreasing the share.<ref>{{cite web |last=Purju |first=Alari |title=Transit trade through Estonia: problems and developments |publisher=[[University of Turku]], [[Pan-European Institute]] |location=Finland |date=29 February 2008 |url=http://www.tse.fi/FI/yksikot/erillislaitokset/pei/Documents/bre2008/expert_article172_12008.pdf |access-date=21 August 2012 |archive-url=https://web.archive.org/web/20120211234844/http://www.tse.fi/FI/yksikot/erillislaitokset/pei/Documents/bre2008/expert_article172_12008.pdf |archive-date=11 February 2012 |url-status=dead }}</ref><ref>{{cite news |last=Tubalkain-Trell |first=Marge |title=Estonian businessman: Estonian transit will struggle another 10 years |publisher=Baltic Business News |date=19 June 2008 |url=http://www.bbn.ee/?PublicationId=43ce440f-713d-4469-ae85-5e9d12ddb2e1 |access-date=21 August 2012 |archive-date=11 August 2014 |archive-url=https://web.archive.org/web/20140811214935/http://www.bbn.ee/?PublicationId=43ce440f-713d-4469-ae85-5e9d12ddb2e1 |url-status=dead }}</ref>

Instead of coal, electricity is generated by burning oil shale, with [[Narva Power Plants|largest stations in Narva]]. Oil shale supplies around 70% of the country's primary energy. Other energy sources are natural gas imported from Russia, wood, [[motor fuel]]s, and [[fuel oil]]s.<ref>{{cite web |title=Countries: Estonia |work=Wind energy in the Baltic Sea Region |publisher=Baltic Wind Energy Association |year=2004 |url= http://www.windenergy-in-the-bsr.net/countries_detail_3.html |archive-url= https://web.archive.org/web/20081121195559/http://www.windenergy-in-the-bsr.net/countries_detail_3.html |archive-date =21 November 2008}}</ref>

[[Wind power in Estonia]] amounts to 58.1&nbsp;[[megawatt]]s, whilst roughly 399 megawatts worth of projects are currently being developed. Estonian energy liberalization is lagging far behind the [[Nordic energy market]]. During the accession negotiations with the EU, Estonia agreed that at least 35% of the market are opened before 2009 and all of non-household market, which totals around 77% of consumption, before 2013. Estonia is concerned that Russia could use energy markets to bully it.<ref>{{cite web |last1=Kasekamp |first1=Andres |author-link1=Andres Kasekamp |last2=Mäe |first2=Andres |last3=Soosaar |first3=Sulev |last4=Uustalu |first4=Jaan |last5=Vares |first5=Villu |last6=Wegmarshaus |first6=Gert-Rüdiger |title=Energy Security of Estonia in the Context of the Energy Policy of the European Union |publisher=Estonian Foreign Policy Institute |date=September 2006 |url=http://www.evi.ee/lib/Security.pdf |access-date=10 August 2011 |url-status=dead |archive-url=https://web.archive.org/web/20120108161835/http://www.evi.ee/lib/Security.pdf |archive-date=8 January 2012 |df=dmy}}</ref> In 2009, the government considered granting permits to nuclear power companies, and there were plans for a shared nuclear facility with Latvia and Lithuania.<ref>{{cite news |title=Latvia, Estonia push for Baltic nuclear plant |agency=[[Agence France-Presse]] |publisher=Spacedaily.com |date=18 February 2009 |url= http://www.spacedaily.com/reports/Latvia_Estonia_push_for_Baltic_nuclear_plant_999.html |access-date =10 August 2011}}</ref> Those plans were shelved after the [[Fukushima Daiichi nuclear disaster]] in March 2011.

Estonia has high Internet penetration, and connections are available throughout most of the country.

==Trade==
{| class="sortable wikitable" style="float:right; text-align:left; font-size:90%;"
|- style="font-size:100%; text-align:left;"
! style="width:120px;"|Country!! style="width:60px;"|Export
!! style="width:60px;"|Import</tr>
|-
| {{flag|Finland}} ||17%|| style="text-align:right"|15%
|-
| {{flag|Latvia}} ||12%||style="text-align:right"|11%
|-
| {{flag|Sweden}}  ||9%|| style="text-align:right"|8%
|-
| {{flag|Lithuania}} ||8%|| style="text-align:right"|10%
|-
| {{flag|Germany}} ||7%||style="text-align:right"|12%
|-
| {{flag|Netherlands}} ||4%|| style="text-align:right"|6%
|}
Estonia exports electrical equipment (14% of all exports annually), wood and wooden articles (11% of all exports annually), food and agricultural products (11% of all exports annually), mineral products (10% of all exports annually), and transport equipment (10% of all exports annually). Estonia imports electrical and transport equipment (26% of all imports annually, 13% each), mineral products (12% of all imports annually), food and agricultural products (11% of all imports annually), machinery and mechanical appliances (10% of all imports annually).<ref name="Statistics Estonia">{{cite web |title=Foreign trade decreased significantly in 2023 |publisher=[[Statistikaamet]] |url= https://www.stat.ee/en/news/foreign-trade-decreased-significantly-2023 |access-date =29 October 2024}}</ref>
{{clear|right}}

==Natural resources==
{| class="sortable wikitable" style="font-size:90%"
 |- style="font-size:100%; text-align:left"
 ! style="width:200px;"|[[natural resource|Resource]]!! style="width:200px;"|Location!! style="width:200px;"|[[Resource|Reserves]]
 |-
 | [[Oil shale]]||north-east|| style="text-align:right"|1,137,700,000 mln t
 |-
 | [[Bay mud|Sea mud]] (medical) ||south|| style="text-align:right"|1,356,400,000 mln t
 |-
 | [[sand|Construction sand]] ||across the country|| style="text-align:right"|166,700,000 mln m<sup>3</sup>
 |-
 | [[Gravel|Construction gravel]] ||north||style="text-align:right"|32,800,000 mln m<sup>3</sup>
 |-
 | [[Bay mud|Lake mud]] (medical)||across the country|| style="text-align:right"|1,133,300 mln t
 |-
 | [[Bay mud|Lake mud]] (fertilizer)||east|| style="text-align:right"|170,900 t
 |-
 | [[Clay|Ceramic clay]] ||across the country||style="text-align:right"|10,600,000 mln m<sup>3</sup>
 |-
 | [[Clay|Ceramsid clay]] (for gravel) ||across the country|| style="text-align:right"|2,600,000 mln m<sup>3</sup>
 |-
 | [[Dolomite (mineral)|Technological dolomite]] ||west|| style="text-align:right"|16,600,000 mln m<sup>3</sup>
 |-
 | [[Limestone|Technological limestone]] ||north|| style="text-align:right"|13,800,000 mln m<sup>3</sup>
 |-
 | [[Dolomite (mineral)|Decoration dolomite]] ||west|| style="text-align:right"|2,900,000 mln m<sup>3</sup>
 |-
 | [[Dolomite (mineral)|Construction dolomite]] ||west|| style="text-align:right"|32,900,000 mln m<sup>3</sup>
 |-
 | [[Clay|Blue clay]] ||across the country|| style="text-align:right"|2,044,000 mln t
 |-
 | [[Granite]] ||across the country|| style="text-align:right"|1,245,100,000 mln m<sup>3</sup>
 |-
 | [[Peat]] ||across the country|| style="text-align:right"|230,300,000 mln t
 |-
 | [[Limestone|Construction limestone]] ||north|| style="text-align:right"|110,300,000 mln m<sup>3</sup>
 |-
 | [[Limestone|Limestone cement]] ||north|| style="text-align:right"|9,400,000 mln m<sup>3</sup>
 |-
 | [[Clay|Clay cement]] ||north|| style="text-align:right"|15,6000,000 mln m<sup>3</sup>
 |-
 | [[Graptolitic argillite]]<ref>{{cite web |title=Maavarad |language=et |trans-title=Minerals |publisher=[[University of Tartu]] |url=http://www.ut.ee/BGGM/maavara/dityoneema.html |access-date=3 March 2015}}</ref> ||north|| style="text-align:right"| 64,000,000,000 mln t
 |-
 | Wood ||across the country|| style="text-align:right"|15,6000,000 mln m<sup>3</sup>
 |-
 | [[Sand|Technological sand]] ||north|| style="text-align:right"|3,300,000 mln m<sup>3</sup>
 |-
 | [[Lime (mineral)|Lake lime]] || north and south || style="text-align:right"|808,000 t
 |-
 | [[Phosphorite]] ||north|| style="text-align:right"|over 350,000,000 mln t (estimated)
 |-
 | [[Subsoil]] ||across the country|| style="text-align:right"| 21,1&nbsp;km<sup>3</sup>
 |}

== Data ==
The following table shows the main economic indicators in 1993–2018.<ref>{{cite web |title=Report for Selected Countries and Subjects |date=January 2018 |publisher=[[International Monetary Fund]] |url= https://www.imf.org/external/pubs/ft/weo/2018/01/weodata/weorept.aspx?sy=1993&ey=2023&scsm=1&ssd=1&sort=country&ds=.&br=1&c=939&s=NGDP_RPCH,PPPGDP,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP&grp=0&a=&pr.x=5&pr.y=13 |access-date=2018-09-11}}</ref>
{| class="wikitable sortable" style="text-align:center;"
!Year
!GDP<br /><small>(in Bil. US$ PPP)</small>
!GDP per capita<br /><small >(in US$ PPP)</small>
!GDP
<small>(in Bil. US$ nominal)</small>
!GDP growth<br /><small>(real)</small>
!Inflation rate<br /><small>(in Percent)</small>
!Unemployment<br /><small>(in Percent)</small>
!Government debt<br /><small>(in % of GDP)</small>
|-
|1993
|{{Increase}}11.2
|{{Increase}}7,338
|{{Increase}}1.8
|{{Increase}}n/a
|{{IncreaseNegative}}
|{{IncreaseNegative}}6.5%
|n/a
|-
|1994
|{{Increase}}11.3
|{{Increase}}
|{{Increase}}2.5
|{{Increase}}
|{{IncreaseNegative}}
|{{decreasePositive}}
|n/a
|-
|1995
|{{Increase}}11.7
|{{Increase}}8,022
|{{Increase}}3.9
|{{Increase}}2.2%
|{{IncreaseNegative}}29.0%
|{{IncreaseNegative}}9.6%
|9%
|-
|1996
|{{Increase}}12.5
|{{Increase}}
|{{Increase}}4.8
|{{Increase}}
|{{IncreaseNegative}}
|{{decreasePositive}}
|{{decreasePositive}}
|-
|1997
|{{Increase}}14.4
|{{Increase}}
|{{Increase}}5.2
|{{Increase}}
|{{IncreaseNegative}}
|{{decreasePositive}}
|{{decreasePositive}}
|-
|1998
|{{increase}}15.2
|{{increase}}
|{{Increase}}5.6
|{{increase}}
|{{IncreaseNegative}}
|{{decreasePositive}}
|{{decreasePositive}}
|-
|1999
|{{increase}}15.3
|{{increase}}
|{{Increase}}5.7
|{{increase}}
|{{IncreaseNegative}}
|{{IncreaseNegative}}
|{{IncreaseNegative}}
|-
|2000
|{{increase}}17.3
|{{Increase}}12,113
|{{Increase}}5.7
|{{increase}}10.6%
|{{IncreaseNegative}}3.9%
|{{IncreaseNegative}}14.6%
|{{decreasePositive}}5%
|-
|2001
|{{increase}}18.8
|{{Increase}}
|{{Increase}}6.3
|{{Increase}}
|{{IncreaseNegative}}
|{{IncreaseNegative}}
|{{IncreaseNegative}}
|-
|2002
|{{increase}}20.3
|{{Increase}}
|{{Increase}}7.4
|{{Increase}}
|{{Increase}}
|{{IncreaseNegative}}
|{{IncreaseNegative}}
|-
|2003
|{{increase}}22.3
|{{Increase}}
|{{Increase}}9.9
|{{Increase}}
|{{Increase}}
|{{decreasePositive}}
|{{IncreaseNegative}}
|-
|2004
|{{increase}}24.5
|{{Increase}}
|{{Increase}}12.2
|{{Increase}}
|{{IncreaseNegative}}
|{{decreasePositive}}
|{{IncreaseNegative}}
|-
|2005
|{{increase}}27.7
|{{Increase}}19,765
|{{Increase}}14.1
|{{Increase}}9.4%
|{{IncreaseNegative}}4.1%
|{{decreasePositive}}8.0%
|{{Steady}}5%
|-
|2006
|{{increase}}31.3
|{{Increase}}22,600
|{{Increase}}17.1
|{{Increase}}10.3%
|{{Increase}}4.4%
|{{decreasePositive}}5.9%
|{{IncreaseNegative}}4%
|-
|2007
|{{increase}}34.6
|{{Increase}}25,144
|{{Increase}}22.5
|{{Increase}}7.7%
|{{IncreaseNegative}}6.7%
|{{decreasePositive}}4.6%
|{{decreasePositive}}4%
|-
|2008
|33.4
|{{Increase}}24,328
|{{Increase}}24.4
|{{Increase}}−5.4%
|{{IncreaseNegative}}10.6%
|{{decreasePositive}}5.5%
|{{IncreaseNegative}}4%
|-
|2009
|28.7
|{{Increase}}20,946
|19.7
|{{Increase}}−14.7%
|{{IncreaseNegative}}0.2%
|{{IncreaseNegative}}13.5%
|{{IncreaseNegative}}7%
|-
|2010
|{{increase}}29.8
|{{increase}}21,721
|19.6
|{{increase}}2.3%
|{{IncreaseNegative}}2.7%
|{{IncreaseNegative}}16.7%
|{{IncreaseNegative}}7%
|-
|2011
|{{increase}}32.6
|{{increase}}23,919
|{{Increase}}23.2
|{{increase}}7.6%
|{{IncreaseNegative}}5.1%
|{{Steady}}13.2%
|{{IncreaseNegative}}6%
|-
|2012
|{{increase}}34.4
|{{Increase}}25,494
|23.0
|{{Increase}}4.3%
|{{IncreaseNegative}}4.2%
|{{IncreaseNegative}}10.0%
|{{decreasePositive}}10%
|-
|2013
|{{increase}}36.2
|{{Increase}}26,508
|{{Increase}}25.1
|{{Increase}}1.9%
|{{Increase}}3.2%
|{{IncreaseNegative}}8.6%
|{{IncreaseNegative}}10%
|-
|2014
|{{increase}}38.1
|{{Increase}}27,856
|{{Increase}}26.6
|{{Increase}}2.9%
|{{Increase}}0.5%
|{{decreasePositive}}7.4%
|{{decreasePositive}}11%
|-
|2015
|{{increase}}38.4
|{{Increase}}28,685
|22.9
|{{Increase}}1.7%
|{{decreasePositive}}0.1%
|{{decreasePositive}}6.2%
|{{IncreaseNegative}}10%
|-
|2016
|{{increase}}41.2
|{{Increase}}29,684
|{{Increase}}24.1
|{{Increase}}2.1%
|{{decreasePositive}}0.9%
|{{decreasePositive}}6.8%
|{{IncreaseNegative}}9%
|-
|2017
|{{increase}}44.7
|{{Increase}}31,750
|{{Increase}}26.9
|{{Increase}}4.9%
|{{Increase}}3.7%
|{{decreasePositive}}5.8%
|{{decreasePositive}}9%
|-
|2018
|{{increase}}47.5
|{{Increase}}
|{{Increase}}30.6
|{{Increase}}
|{{Increase}}
|{{decreasePositive}}
|{{decreasePositive}}
|-
|2019
|{{increase}}50.3
|
|{{Increase}}31.3
|
|
|
|
|}
Gross domestic product per capita by county.<ref>{{Cite web |title=RAA0050: Gross domestic product by county (ESA 2010) |url=https://andmed.stat.ee/et/stat/majandus__rahvamajanduse-arvepidamine__sisemajanduse-koguprodukt-(skp)__regionaalne-sisemajanduse-koguprodukt/RAA0050/table/tableViewLayout2 |access-date=2025-02-16 |website=andmed.stat.ee}}</ref>
{| class="wikitable sortable"
|+
!
!GDP per capita, euros
|-
!County
!2023
|-
|Whole country
|27,868.5
|-
|Harju county
|36,709.5
|-
|..Tallinn
|41,916.7
|-
|Hiiu county
|18,034.7
|-
|Ida-Viru county
|19,678.1
|-
|Jõgeva county
|16,973.3
|-
|Järva county
|19,483.0
|-
|Lääne county
|16,022.8
|-
|Lääne-Viru county
|18,277.6
|-
|Põlva county
|14,623.7
|-
|Pärnu county
|18,889.2
|-
|Rapla county
|15,946.1
|-
|Saare county
|17,084.9
|-
|Tartu county
|27,021.8
|-
|..Tartu city
|32,183.3
|-
|Valga county
|14,592.1
|-
|Viljandi county
|19,320.5
|-
|Võru county
|16,664.2
|}

==See also==
* [[Banking in Estonia]]

==References==
{{Reflist}}

{{Estonia topics|state=autocollapse}}
{{Members of the European Union (EU)}}
{{Organisation for Economic Co-operation and Development}}
{{World Trade Organization}}
{{Economy of Europe}}

{{DEFAULTSORT:Economy of Estonia}}
[[Category:Economy of Estonia| ]]
[[Category:Economies of Europe by country|Estonia]]
[[Category:European Union member economies|Estonia]]
[[Category:OECD member economies|Estonia]]