• Moody's: A1
• Standard & Poor: A-
• Fitch IBCA: A-

Free Trade Agreements
 
Free trade agreements are in force with the European Union (EU), European Free Trade Association (EFTA), Latvia, Lithuania, Ukraine, Czech Republic, Slovakia, Slovenia, Bulgaria, Turkey, Poland and Hungary, Faroe Islands.
 
Key Indicators
 

Key Indicators	1997	1998	1999	2000	2001	2002
Mean annual population (million)	1.46	1.45	1.44	1.37*	1.36*	1.36*
GDP at current prices (billion EUR)	4.1	4.7	4.8	5.5	6.1	6.8
Real growth of GDP (%)	10.6	4.7	-0.7	6.9	5.4	5.8
GDP per capita at current prices (EUR)	2 800	3 200	3 339	3 986	4 465	4 992
Annual FDI (million EUR)	236.1	515.8	284.3	435.1	597.8	329.5
Annual FDI per capita (EUR)	161	356	197	310	438	242
Consumer price index compared to previous year (%)	11.2	8.2	3.3	4.0	5.8	3.6
Unemployment rate** (%)	9.7	9.9	12.3	13.7	12.7	10.3
Average monthly wage (EUR)	228	263	284	312	352	393
Current account balance (% of GDP)	-12.1	-9.2	-4.7	-6.0	-6.2	-11.1
Deficit(-)/Surplus of state budget (% of GDP)	2.2	-0.3	-4.6	-0.7	0.4	1.2
Export (billion EUR)***	2.606	2.912	2.758	3.444	3.696	3.633
Import (billion EUR)***	3.940	4.306	3.865	4.614	4.798	5.077
Trade balance (billion EUR)***	-1.334	-1.393	-1.106	-1.169	-1.101	-1.444
Total government expenditures (% of GDP)	37.7	39.7	41.5	36.7	36.2	39.1

 
* Based on the 2000 Population Census;
** Unemployed/labour force according to ILO methodology;
*** Trade figures shown in general trade system
Sources: Bank of Estonia, Ministry of Finance, Statistical Office of Estonia
 
GDP by Main Fields of Economic Activity
(as a % of total GDP)
 

Field of Activity	1998	1999	2000	2001	2002
Manufacturing	17.7	16.5	18.1	18.4	18.6
Wholesale and retail trade	14.9	14.4	13.9	14.2	14.6
Transport, storage and communication	14.3	15.2	16.3	16.4	15.9
Real estate, renting and business services	11.1	11.2	11.0	11.3	11.1
Construction	6.7	6.0	6.1	5.9	6.4
Education	5.5	6.1	5.7	5.4	5.5
Financial services	3.6	4.0	4.1	4.3	4.4
Agriculture and hunting	4.3	3.7	3.4	3.3	3.0

Source: Statistical Office of Estonia
 
Main Trade Partners in 2002 (as a % of total trade)
(figures shown in special trade system)
 

Country	% of exports	Country	% of imports
1. Finland	24.8	1. Finland	17.2
2. Sweden	15.3	2. Germany	11.2
3. Germany	9.9	3. Sweden	9.5
4. Latvia	7.4	4. Russia	7.4
5. United Kingdom	4.8	5. China	5.2
6. Denmark	4.4	6. Italy	4.6
7. Lithuania	3.5	7. Japan	3.8
8. Netherlands	3.4	8. Lithuania	3.3
9. Norway	3.4	9. USA	3.2
10. Russia	3.3	10. Poland	2.8

Source: Statistical Office of Estonia
 
Main Exports and Imports in 2002
(as a % of total trade)
 

Commodity Group	Exports
Machinery and equipment	24.8
Wood and products of wood	15.1
Textile products	12.1
Agricultural products and food preparations	8.3
Metals and products of metals	7.7
Raw materials and products of chemical industry	4.4
Transport equipment	4.1
Mineral products	2.6
Articles of plastics and rubber	2.6
Other	18.3

 

Commodity Group	Imports
Machinery and equipment	29.7
Transport equipment	10.8
Agricultural products and food preparations	9.7
Metals and products of metals	8.9
Textile products	8.2
Raw materials and products of chemical industry	7.3
Mineral products	6.2
Articles of plastics and rubber	5.0
Wood and products of wood	2.4
Other	11.8

Source: Statistical Office of Estonia
 
Direct Investment Position in Estonia by Countries
as of 31 December 2002
 

Country	million EUR	% of total
1. Sweden	1 649.5	40.9
2. Finland	1 083.9	26.9
3. USA	325.4	8.1
4. Netherlands	162.6	4.0
5. Norway	132.7	3.3
6. Denmark	101.2	2.5
7. United Kingdom	92.3	2.3
8. Germany	85.9	2.1
Others	400.6	9.9
Total	4 034.1	100

Source: Bank of Estonia
 
Estonia’s Direct Investment Position abroad by Countries
as of 31 December 2002
 

Country	million EUR	% of total
1. Lithuania	278.6	43.6
2. Latvia	199.6	31.2
3. Cyprus	88.4	13.8
4. Italy	40.3	6.3
5. Russia	11.2	1.7
6. Ukraine	10.9	1.7
7. Poland	6.5	1.0
Others	4.0	0.7
Total	639.5	100

Source: Bank of Estonia
 
Telecommunications and IT
 

Â	12/2000	12/2001	09/2002
Telephone main (fixed) lines per 100 inhabitants	35.9	34.9	34.2
Share of digital lines (%)	71.2	71.8	76.9
Number of mobile phone subscribers per 100 inhabitants	40.8	54	65

Sources: Estonian Telephone Company, Statistical Office of Estonia

• 45 per cent of population are Internet users (EMOR, summer 2003)
• 35 per cent of population have a computer at home, 69 per cent of home computers are connected to the Internet (EMOR, spring 2003)
• All Estonian schools are connected to the Internet
• There are about 500 Public Internet Access Points in Estonia, 36 per 100 000 people (one of the highest numbers in Europe)
• The number of Estonian websites exceeds one million
• Incomes can be declared to the Tax Board via Internet
• Expenditures made in state budget can be followed on the Internet in real-time
• The Government has changed Cabinet meetings to paperless sessions using a web-based document system
• 43 per cent of Estonian people conduct their everyday banking via Internet
• 65 per cent of the population are mobile phone subscribers
• All of Estonia is covered with digital mobile phone networks
• There are over 100 free wireless Internet zones around the country.

• Bank of Estonia
• Statistical Office of Estonia
• Estonian Chamber of Commerce and Industry
• Ministry of Finance
• Ministry of Economic Affairs and Communications
• Estonian Investment Agency
• Tallinn Stock Exchange
• Estonian business information gateway
• Enterprise Estonia
• Estonian Trade Promotion Agency
• Estonian Business Association
• Transformations in the Estonian economy