Estonia » Introduction

Basic Economic Facts

GDP Composition by Sector

As a member of the European Union, Estonia is part of the world's largest economic zone. Estonia joined the WTO in November 1999. It was the second Baltic state to join. With assistance from the European Union, the World Bank and the Nordic Investment Bank, Estonia completed most of its preparations for European Union membership by the end of 2002 and now has one of the strongest economies of the new member states of the European Union, which it joined on 1 May 2004.

The Estonian economy is growing quickly, partly due to a number of Scandinavian companies relocating their routine operations to the country and Russian oil transit using Estonian ports. Estonia has a strong information technology (IT) sector. Its GDP PPP per capita is at $17,802, the highest of the Baltic states, while its unemployment rate was 4.2% in July 2006, one of the lowest in the European Union.

In June 1992, Estonia replaced the ruble with its own freely convertible currency, the Kroon (EEK). A currency board was created and the new currency was pegged to the German Mark at the rate at 8 EEK for 1 DEM. When Germany introduced the Euro, the peg was changed to 15.6466 Kroon for 1 Euro. The Estonian government is intending to adopt the Euro as the country's currency on 1 January 2008 due to continued high inflation, and finalised the design of Estonia's Euro coins in late 2004.