Economy

Economy—overview: In 1997 Estonia's continued implementation of market economic reforms disciplined fiscal and monetary policies and a liberal free trade regime resulted in GDP growth of 10% and a drop in inflation to 11.2%. Estonia can point to its inclusion among the first group of Central and East European countries to begin EU accession talks in 1998 as its most significant economic achievement in 1997. Other economic strengths include solid investment grade rating from both Standard and Poors and Moody's government revenue collection in excess of projections by more than 6% growth in exports at a faster rate than imports and record levels of foreign direct investment among the highest per capita in Central and East Europe. Estonia privatized its shipping company in 1997 but failed to make as much progress privatizing other large infrastructure/utility companies such as Eesti Energia and the Oil Shale company which it plans to privatize in the next two years. The growing current account deficit which stood at nearly 10% of GDP at yearend 1997 remains a serious concern. In 1998 GDP is expected to grow by 5.5% and inflation to fall 10%.

GDP: purchasing power parity—$9.34 billion (1997 est.)

GDP—real growth rate: 10% (1997 est.)

GDP—per capita: purchasing power parity—$6 450 (1997 est.)

GDP—composition by sector:

agriculture: 7.1%

industry: 24.9%

services: 68% (1995 est.)

Inflation rate—consumer price index: 11.2% (1997 est.)

Labor force:

total: 785 000 (1996 est.)

by occupation: industry and construction 42% agriculture and forestry 20% other 38% (1990)

Unemployment rate: 3.6% (1997 est.)

Budget:

revenues: $1.7 billion

expenditures: $1.8 billion including capital expenditures of $214 million (1996 est.)

Industries: oil shale shipbuilding phosphates electric motors excavators cement furniture clothing textiles paper shoes apparel

Industrial production growth rate: 3% (1996 est.)

Electricity—capacity: 3.287 million kW (1995)

Electricity—production: 8.083 billion kWh (1995)

Electricity—consumption per capita: 4 355 kWh (1995)

Agriculture—products: potatoes fruits vegetables; livestock and dairy products; fish

Exports:

total value: $2 billion (f.o.b. 1996)

commodities: textiles 16% food products 16% machinery and equipment 16% metals 9% (1995)

partners: Finland Russia Sweden Germany Latvia (1995)

Imports:

total value: $3.2 billion (c.i.f. 1996)

commodities: machinery and equipment 29% foodstuffs 14% minerals 13% textiles 13% metals 12% (1995)

partners: Finland Russia Sweden Germany (1995)

Debt—external: $270 million (January 1996)

Economic aid:

recipient: ODA $147 million (1993)

note: Western commitments $285 million (including international financial institutions)

Currency: 1 Estonian kroon (EEK) = 100 cents (introduced in August 1992)

Exchange rates: krooni (EEK) per US$1—14.527 (January 1998) 13.882 (1997) 12.034 (1996) 11.465 (1995) 12.991 (1994) 13.223 (1993); note—krooni are tied to the German deutsche mark at a fixed rate of 8 to 1

Fiscal year: calendar year