Economy

Last modified 21.06.2010

The Estonian economy is considered to be liberal and innovative. IT is one of the most popular areas of business and also “the thing” to study. The use of IT has infiltrated services as well as the industrial sector and has greatly changed the way things are done nowadays. The main trend is towards simplification, innovation and customer-friendliness.

The fact that companies do not have to pay income tax for re-invested profits is considered to be an effective method for enhancing entrepreneurship and for the promotion of innovation and new business solutions. Income tax must be paid only on profits that are paid out to shareholders.

Estonian GDP has grown constantly since 1997, dropping only slightly in the year 1999. After the economic boom in 2006 and 2007, the Estonian economy is currently cooling off. GDP growth was 11.6% in 2006 and 7.1% in 2007. Economic growth still relies on domestic demand supported mainly by a prompt income growth and substantial foreign capital inflow. Estonia’s main business partners are Finland, Sweden and Germany.

Ministry of Economic Affairs and Communications

Ministry of Foreign Affairs. Estonia. Economy and Agriculture

Estonian Information Society in Facts and Figures

source: Estonica