Capital City: Tallinn
	It is %T:%M %A in Tallinn

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Economic trends

Estonia, which became a member of the European Union on the 1st May of 2004, has successfully moved from a centralised economy to a performing services-oriented free-market economy. A balanced budget (guaranteed by constitution), flat-rate income tax, free trade regime, fully convertible currency, competitive commercial banking sector, and hospitable environment for foreign investment are hallmarks of Estonia's free-market-based economy. The GDP growth rate was 11.2% in 2006 and 8% in 2007, with a forecast of 6% in 2008. The privatization of state-owned firms is virtually complete, with only the port and the main power plants remaining in government hands. The unemployment rate is estimated to have declined substantially to nearly 5%. The inflation has faced a revival from 4.5% in 2006 to 6% in 2007.

Main branches of industry

Agriculture contributes nearly 4% to the country’s GDP and employs around 20% of the active population. The main agricultural products are meat (largely pork), dairy products, potatoes, flax, and sugar beets. Fishing is also an important activity. Estonia is nearly energy independent, fulfilling more than 90% of its electricity needs with locally mined oil shale. It is 2nd largest producer of oil shale in the world. The manufacturing sector contributes nearly 29% to the GDP and attracts substantial foreign investment. Major areas of activity are: civil engineering, electronic & telecommunication equipment, textiles & clothing, furniture, and food-processing. Heavy industry is slowing moving out of the country. Building & construction industry is doing well. Natural resources like limestone & clays (used in production of cement and earthenware), sand (for glass), phosphorus (for fertilizers), and timber also exist in Estonia. The services sector contributes nearly 67% to the GDP

International trade

EU is the country’s major trading block. The share of foreign trade in country’s GDP has reached +165%. Estonia also boasts of a national currency that is freely convertible at a fixed exchange rate. The top three export partners of the country are: Finland, Sweden, and Latvia. The commodities mainly exported are electric & electronic equipment, wood & charcoal, furniture, mineral fuels & oils, and vehicles. The top three import partners are: Germany, Finland and Russia. Estonia mainly imports electric & electronic equipment, machinery, vehicles, mineral fuels & oils, and iron & steel.