Economy of Estonia

Common card · No. 264512

Estonia has an advanced developed economy. It is a member of the European Union, the eurozone, and the OECD. The economy is heavily influenced by developments in the Finnish and Swedish economies. After Estonia restored its independence in 1991 and became a market economy, it emerged as a pioneer in the global economy. Estonia styled itself as a bridge between East and West, adopting significant economic reforms and technological innovations. In 1992, the country adopted the Estonian kroon as its currency, which was pegged to the Deutsche Mark at a rate of 8 kr = 1 Dm, this stabilised the economy. In 1994, it became the first country in the world to adopt a flat tax, with a rate of 26% regardless of personal income. Estonia received more foreign investment, per person, in the late 1990s than any other country in Central and Eastern Europe. The country has been catching-up with the EU-15 - the richer European countries. Its GDP per capita grew from 35% of the EU-15 average in 1996 to 65...

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