Economy of Estonia

[Patrick Moore]

Estonia is considered to be a developed nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developed nation, Estonia is able to provide its citizens with social services like public education, healthcare, and law enforcement. Citizens of developed nations enjoy a high standard of living and longer life expectancies than citizens of developing nations. Each year, Estonia exports around $15.11 billion and imports roughly $16.38 billion. 5.5% of population in the country are unemployed. The total number of unemployed people in Estonia is 71,873. In Estonia, 21% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Estonia is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 4.8% of GDP. The Gini Index of the country is 32.9. Estonia is experiencing good equality. The majority of citizens in Estonia fall within a narrow range of income, although some cases may show significant differences. Estonia has a Human Development Index (HDI) of 0.84. Estonia has a high HDI score. This indicates that the majority of citizens will be able to attain a desirable life while providing substantial aid and assistance to citizens with lower living standards. The Global Peace Index (GPI) for Estonia is 1.677. Due to strong law enforcement presence and high social responsibility, Estonia is very safe by international standards. The strength of legal rights index for Estonia is 7. Overall, it is considered to be rather adequate - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders at least decently; credit information is msotly sufficient and generally available.

Currency

The currency of Estonia is euro. There are several plural forms of the name 'euro'. These are euro, euros. The symbol used for this currency is €, and it is abbreviated as EUR. The euro is divided into Cent; there are 100 in one euro.

Credit rating

The depth of credit information index for Estonia is 7, which means that information is mostly sufficient and quite detailed; accessibility is not a problem. According to the S&P credit-rating agency, Estonia has a credit rating score of AA-, and the prospects of this rating are stable. According to the Fitch credit-rating agency, Estonia has a credit rating score of A+, and the prospects of this rating are stable. According to the Moody's credit-rating agency, Estonia has a credit rating score of A1, and the prospects of this rating are stable.

Central bank

The prime lending rate of Estonia's commercial banks is 5.1. In Estonia, the institution that manages the state's currency, money supply, and interest rates is called Bank of Estonia. Locally, the central bank of Estonia is called Eesti Pank. The average deposit interest rate offered by local banks in Estonia is 0.5%.

Public debt

The government debt of Estonia has not been calculated yet.

Tax information

The corporate tax in Estonia is set at 20%. VAT in Estonia is 20%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Estonia is $36784 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Estonia was last recorded at $28 million. PPP in Estonia is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Estonia is 24,880 billion. Based on this statistic, Estonia is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Estonia was last recorded at $19 million. The average citizen in Estonia has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Estonia averaged 1.2% in 2014. According to this percentage, Estonia is currently experiencing modest growth.