Estonia Economy 1997

Economy - overview Estonia continues to experience strong economic growth after its economybottomed out in 1993. Bolstered by a widespread national desire to reintegrateinto Western Europe, Estonia has adhered to disciplined fiscal and financialpolicies and has led the FSU countries in pursuing economic reform. Monthlyinflation has been held to 2% in 1995-96. Following four years of decline,Estonia's GDP grew at 3% in 1995 and 1996. Despite these positive economicindicators, the current account deficit is widening. The resident IMF representativein Estonia has been worried since early 1996 about a rising public sectordeficit boosted by local government spending. Small- and medium-scale privatizationis essentially complete, and large-scale privatization is progressing gradually.In 1996, Estonia's national airline was privatized; in 1997 Estonia plansto privatize large infrastructure, i.e., Eesti Energia, Tallinn Port, EstonianTelecom, and Oil Shale. Estonia has successfully reoriented its trade towardthe West, two-thirds of exports now going to Western markets. Estonia's freetrade policies were the cornerstone of its negotiations with the EuropeanUnion, and led to the signing of an association agreement in June 1995. Estoniawas the only Baltic state not to have a transition period imposed by the EUprior to its implementation of a free trade agreement.

GDP purchasing power parity - $8.1 billion (1996 estimate as extrapolatedfrom World Bank estimate for 1994)

GDP - real growth rate 3% (1996 est.)

GDP - per capita purchasing power parity - $5,560 (1996 est.)

GDP - composition by sector
agriculture: 10%
industry: 37%
services : 53% (1993 est.)

Inflation rate - consumer price index 23% (1996 est.)

Labor force
total: 750,000 (1992)
by occupation: industry and construction 42%, agriculture and forestry 20%, other 38%(1990)

Unemployment rate 5% (1996 official est.)

Budget
revenues: $620 million
expenditures : $582 million, including capital expenditures of $NA (January-October1995)

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

Industrial production growth rate 3% (1996 est.)

Electricity - capacity 3.29 million kW (1994)

Electricity - production 8.6 billion kWh (1994)

Electricity - consumption per capita 4,005 kWh (1995 est.)

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%, metals9% (1995)
partners: Finland, Russia, Sweden, Germany, Latvia (1995)

Imports
total value : $3.1 billion (c.i.f., 1996)
commodities: machinery and equipment 29%, foodstuffs 14%, minerals 13%, textiles13%, 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 financialinstitutions)

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

Exchange rates krooni (EEK) per US$1 - 12.6 (January 1997), 12.410 (December 1996),12.034 (1996), 11.465 (1995), 12.991 (1994), 13.223 (1993); note - krooniare tied to the German deutsche mark at a fixed rate of 8 to 1

Fiscal year calendar year

NOTE: The information regarding Estonia on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Estonia Economy 1997 information contained here. All suggestions for corrections of any errors about Estonia Economy 1997 should be addressed to the CIA.