A town in Estonia

Estonia Economic Data & Projections

Estonia Economic Outlook

A digital leader in Europe:

Estonia, with a GDP of around $40 billion, has one of the most advanced digital economies in the world. The country is known for its highly developed e-governance system and strong tech sector, which has fostered innovation and entrepreneurship. Growth has been strong in recent years, although Estonia fell into recession in 2023 due to high inflation, weak external demand, and rising interest rates. The economy remains highly dependent on exports, making it vulnerable to European economic slowdowns.

Key industries and trade:

Estonia’s economy is export-driven, with key sectors including information technology, electronics manufacturing, and wood processing. The country has a thriving startup ecosystem, producing global tech firms like Skype, Bolt, and Wise. Estonia is also one of the most energy-independent countries in the EU, thanks to its large oil shale reserves, though it has been shifting toward renewables. Trade is heavily oriented toward the EU and Nordic countries, with Finland and Sweden among its top partners.

Challenges:

Estonia faces several economic challenges, including an aging population, labor shortages, and inflation. Inflation was among the highest in the eurozone in 2022, exceeding 20% at its peak, before easing in 2023. The country also has a small domestic market, limiting economies of scale. While Estonia is a leader in digital transformation, it must continue investing in infrastructure and innovation to sustain long-term competitiveness.

Estonia's Macroeconomic Analysis:

Nominal GDP of USD 41.3 billion in 2023.

GDP per capita of USD 30,137 compared to the global average of USD 10,589.

Average real GDP growth of 2% over the last decade.

Share of the region's population
Share of the region's GDP

Sector Analysis

In 2022, services accounted for 64% of overall GDP, manufacturing 13%, other industrial activity 21%, and agriculture 2%. Looking at GDP by expenditure, private consumption accounted for 53% of GDP in 2023, government consumption 21%, fixed investment 27%, and net exports -1%.

GDP by economic sector
GDP by type of expenditure

International trade

In 2021, manufactured products made up 66% of total merchandise exports, mineral fuels 8%, food 12%, ores and metals 2% and agricultural raw materials 7%, with other categories accounting for 5% of the total. In the same period, manufactured products made up 64% of total merchandise imports, mineral fuels 11%, food 13%, ores and metals 2% and agricultural raw materials 2%, with other goods accounting for 8% of the total. Total exports were worth USD 19 billion in 2023, while total imports were USD 22 billion.

Key exports
Key imports
Key export partners
Key import partners

Main Economic Indicators

Economic growth

The economy recorded average annual growth of 2.0% in the decade to 2024. To read more about GDP growth in Estonia, go to our dedicated page.

Fiscal policy

Estonia's fiscal deficit averaged 1.1% of GDP in the decade to 2023. Find out more on our dedicated page.

Unemployment

The unemployment rate averaged 6.3% in the decade to 2024. For more information on Estonia's unemployment click here.

Inflation

Inflation averaged 4.3% in the decade to 2024. Go to our Estonia inflation page for extra insight.

Monetary Policy

Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Estonia monetary policy page for additional details.

Exchange Rate

From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.

Economic situation in Estonia

The economy ended 2024 on a weak note, contracting 0.1% year on year in Q4 (Q3: -0.6% yoy). That said, the fall was the smallest since Q1 2022, suggesting the economy’s recent malaise is bottoming out. Absent a full data breakdown, declines in interest rates, producer price inflation and the unemployment rate likely aided domestic demand; average retail sales grew for the first time this year in Q4 and industrial output stabilized after nine quarters of decline in October–November. Moreover, goods exports growth picked up in the same two-month period. In Q1 2025, our panelists have penciled in a shallow rebound as the ECB loosens its monetary policy. In other news, Estonia recently pledged to raise its military spending from the current 3.7% to 5.0% of GDP in response to pressure from Donald Trump and to Russia’s covert attacks on critical infrastructure in the Baltic Sea.

Estonia Economic Forecasts

Projections out to 2034.

46 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 15 expert analysts.

Want to get insight on the economic outlook for Estonia in the coming years? FocusEconomics collects projections out to 2034 on 46 economic indicators for Estonia from a panel of 15 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Estonia economy. To download a sample report on the Estonia's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.

Estonia Economic Indicators

2020 2021 2022 2023 2024
Population (million) 1.3 1.3 1.3 1.4 1.4
GDP (USD bn) 31.8 37.2 38.3 41.3 42.7
GDP per capita (USD) 23,879 27,937 28,396 30,137 31,312
GDP (EUR bn) 27.9 31.5 36.4 38.2 39.5
GDP per capita (EUR) 20,947 23,634 27,015 27,874 28,945
Economic Growth (Nominal GDP, ann. var. %) -2.2 12.9 15.9 4.8 3.5
Economic Growth (GDP, ann. var. %) -2.5 7.2 0.0 -3.1 -0.2
Domestic Demand (ann. var. %) -0.7 7.8 0.1 -1.5 -0.8
Private Consumption (ann. var. %) -1.0 7.2 3.1 -1.5 -0.4
Government Consumption (ann. var. %) 3.9 3.9 -1.6 0.9 0.3
Fixed Investment (ann. var. %) 17.8 0.3 -8.1 7.5 -6.9
Exports (G&S, ann. var. %) -4.1 22.1 5.0 -9.0 -1.1
Imports (G&S, ann. var. %) 0.8 22.7 5.0 -6.7 0.0
Industrial Production (ann. var. %) -3.0 13.3 1.8 -9.7 -4.0
Retail Sales (ann. var. %) -4.3 18.1 18.0 4.1 0.4
Wages (ann. var. %) 2.9 1.7 11.6 11.4 8.1
Unemployment (% of active population, aop) 6.9 6.2 5.6 6.4 7.6
Fiscal Balance (% of GDP) -5.4 -2.6 -1.1 -2.8 -
Public Debt (% of GDP) 19.1 18.4 19.1 20.2 -
Money (ann. var. of M2 %) 19.4 20.2 1.1 5.6 7.4
Inflation (CPI, ann. var. %, eop) -0.8 12.2 17.6 4.0 3.9
Inflation (HICP, ann. var. %, eop) -0.9 12.0 17.5 4.3 4.1
Inflation (HICP, ann. var. %, aop) -0.6 4.5 19.4 9.1 3.7
Inflation (PPI, ann. var. %, aop) -2.4 12.4 26.8 0.9 -0.9
ECB Refinancing Rate (%, eop) 0.00 0.00 2.50 4.50 3.15
ECB Deposit Rate (%, eop) -0.50 -0.50 2.00 4.00 3.00
3-Month EURIBOR (%, eop) -0.55 -0.57 2.13 3.91 2.71
Exchange Rate (USD per EUR, eop) 1.22 1.14 1.07 1.10 1.04
Exchange Rate (USD per EUR, aop) 1.14 1.18 1.05 1.08 1.08
Current Account Balance (EUR bn) -0.7 -1.1 -1.4 -0.7 -0.4
Current Account Balance (% of GDP) -2.5 -3.6 -3.9 -1.7 -1.1
Merchandise Trade Balance (EUR bn) -0.4 -1.4 -2.8 -2.3 -2.7
Merchandise Exports (EUR bn) 13.3 16.4 20.6 18.0 17.7
Merchandise Imports (EUR bn) 13.7 17.8 23.4 20.3 20.4
Merchandise Exports (ann. var. %) -0.3 23.7 25.2 -12.4 -1.9
Merchandise Imports (ann. var. %) -4.4 29.8 31.5 -13.2 0.4
Foreign Direct Investment (EUR bn) 2.9 0.1 0.9 4.1 -
Free Sample Report

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