Export to Estonia
Export to Estonia
Since regaining independence in 1991, Estonia has transformed itself into a dynamic, technology-focused center of commerce and was recently ranked as the top location in Europe to invest by Foreign Policy Magazine. The business environment has blossomed, mainly due to political stability and the government’s sound economic policies.
Estonia has been a member of the European Union since 2004 and became the first Baltic state to adopt the euro as its official currency on January 1, 2011. Additionally, Estonia formally joined the OECD in December 2010. The Estonian economy has done well in the overall EU context. GDP growth was 3 percent in 2013 and unemployment is down to 9.7 percent. Rising prices remain a concern, with inflation outpacing the rest of Europe at 3.6 percent in 2013. The tightening labour market and inflation have also brought pressure for salary increases.
Estonia’s commercial success relies on its greatest natural asset -- geography. Estonia lies just south of Finland and across the Baltic Sea from Sweden. To the east is the potential market of northwest Russia. Sound, liberal economic policies and an open and competitive business climate have ensured high levels of foreign direct investment (FDI).
Scandinavian countries are the largest foreign direct investors. Sweden has a 28 percent share of the total FDI, followed by Finland with 23 percent, and the Netherlands with 10 percent.
Market Opportunities
Estonian business attitudes towards international trades are positive. Over the next several years, major growth is likely in services, especially in the telecommunications, transportation and energy sectors.
Since regaining independence in 1991, Estonia has transformed itself into a dynamic, technology-focused center of commerce and was recently ranked as the top location in Europe to invest by Foreign Policy Magazine. The business environment has blossomed, mainly due to political stability and the government’s sound economic policies.
Estonia has been a member of the European Union since 2004 and became the first Baltic state to adopt the euro as its official currency on January 1, 2011. Additionally, Estonia formally joined the OECD in December 2010. The Estonian economy has done well in the overall EU context. GDP growth was 3 percent in 2013 and unemployment is down to 9.7 percent. Rising prices remain a concern, with inflation outpacing the rest of Europe at 3.6 percent in 2013. The tightening labour market and inflation have also brought pressure for salary increases.
Estonia’s commercial success relies on its greatest natural asset -- geography. Estonia lies just south of Finland and across the Baltic Sea from Sweden. To the east is the potential market of northwest Russia. Sound, liberal economic policies and an open and competitive business climate have ensured high levels of foreign direct investment (FDI).
Scandinavian countries are the largest foreign direct investors. Sweden has a 28 percent share of the total FDI, followed by Finland with 23 percent, and the Netherlands with 10 percent.
Market Opportunities
Estonian business attitudes towards international trades are positive. Over the next several years, major growth is likely in services, especially in the telecommunications, transportation and energy sectors.
