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Economy and Banking Sector of Estonia

National Currency

Euro (EUR)

Estonia joined the Euro Area on 1 January 2011. The preceding national currency, Estonian kroon (EEK), was replaced by Euro.

GDP

Nominal GDP (2018)
25.7 bln EUR  (+0.11%)
Nominal GDP per Capita (2018)
19,500 EUR  (+0.10%)
Real GDP Growth (2018)
3.9 %  (2017: 4.9 %)

According to Eurostat, nominal GDP of Estonia in 2018 was 25.7 bln EUR.

Estonia outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.0% over the past 10 years (2008 - 2018). In 2018 real GDP growth was 3.9% which was above the Euro Area average (1.9%) and above the European Union average (2.0%). Real GDP growth in 2019 - 2024 are IMF's estimates.

Real GDP Growth in Estonia.

Chart 1. Real GDP Growth in Estonia. Source: Eurostat, International Monetary Fund.

In 2018, nominal GDP per capita in Estonia was 19,500 EUR.

Estonia has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -17.9% over the past 10 years (2007 - 2017). GDP per capita at PPP in 2018 - 2024 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Estonia; European Union = 100.

Chart 2. GDP Per Capita at Purchasing Power Parity in Estonia; European Union = 100.

Inflation Rate

CPI, MoM (Mar 2019)
0.4 %  (Feb 2019: 0.2 %)
CPI, YoY (Mar 2019)
2.2 %  (Feb 2019: 1.9 %)
CPI, Year Average (2018)
3.4 %  (2017: 3.7 %)

According to Eurostat, inflation rate in Estonia in 2018 expressed as annual percentages of average consumer prices was 3.4% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Inflation rates in 2019 - 2024 are IMF's estimates.

Inflation Rate in Estonia.

Chart 3. Inflation Rate in Estonia. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2018)
5.4 %  (2017: 5.8 %)

According to Eurostat, unemployment rate in Estonia in 2018 was 5.4% which was below the Euro Area average (8.2%) and below the European Union average (6.8%). Unemployment rates in 2019 - 2024 are IMF's estimates.

Unemployment Rate in Estonia.

Chart 4. Unemployment Rate in Estonia. Source: Eurostat, International Monetary Fund.

Credit Ratings (as of May 2018)

Fitch
A+ (high credit quality), outlook positive
Moody's
A1 (upper medium grade), outlook stable

Estonia has sovereign credit ratings assigned by Fitch and Moody's: the rating set by Fitch is A+ (high credit quality), outlook positive; the rating set by Moody's is A1 (upper medium grade), outlook stable.