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The Estonian economy is resilient, bolstered by the country’s solid position as a digital powerhouse and startup haven. From tech to timber, each sector of the economy is fuelled by a dynamic, entrepreneurial spirit.
Innovation and openness to foreign capital keep bringing international companies to Estonia. Global giants like Ericsson, ABB, Kuehne+Nagel, Stora Enso, Symantec, and Stoneridge (to name a few) have firmly established themselves here.
Positions in various indices:
Estonia has some of the highest international credit ratings in the region:
The Estonian government consistently shows its commitment to flexible and needs-based legislation, prioritising entrepreneurship. This has resulted in a simple, transparent, and nimble business environment.
Use our unique location attractiveness comparison tool to compare Estonia’s investment landscape to other European countries.
IT plays a central role in the Estonian economy and mindset. The country’s ambitious startup community consistently develops innovative solutions that change the world, as evidenced by the world’s highest number of unicorn startups per capita.
But while the success of the IT sector has made the startup scene blossom, the country is also making big moves in smart industry, including Europe’s first major venture into rare earth magnet production with Neo Performance Materials’ next-gen magnet factory in Narva.
Just over half of the country is forest-covered, and Estonia has become the largest exporter of wooden houses in Europe, building the tallest timber buildings in the world.
Estonia has a diversified energy sector which comprises long-standing expertise in oil shale, a sizeable renewables sector and growing CleanTech capability. World-class expertise within a highly digital, pro-business environment will see Estonia play a leading role in the energy revolution.
A detailed overview of Estonian GDP by economic activity can be found in the “Estonia at a glance” presentation in the Toolkit.
GDP growth:
in 2021: 8.3%
in 2022: -1.3%
in 2023: -3%
in 2024: -0,3%
Inflation for the whole of 2024 was 3.5%, of which 1.6% came from the rise in consumption taxes.
Estonia is among the leading countries in Central and Eastern Europe in foreign direct investments per capita.
The country is highly developed in the FDI-attractive fields of IT, biotechnologies, and green industries. A balanced budget, a free trade regime, a fully convertible currency, a competitive banking sector, and an investment-friendly environment have all contributed to the country’s success.
FDI by field of activity (2024):
31% financial and insurance activities
19% real estate activities
13% professional, scientific and technical activities
10% manufacturing
10% wholesale and retail trade
5% information and communication
Origin of FDI (2024):
21% Finnish companies
17% Luxembourgian companies
11% Swedish companies
8% Latvian companies
6% Dutch companies
5% German companies
These websites can be useful when doing research on Estonian economy:
What is it like to run a business in Estonia? How to benefit from the e-solutions and the efficiency of our business culture? What are the opportunities in specific sectors? Who to partner up with?
The Estonian Investment Agency’s team is happy to help you via its complimentary e-Consulting service, organize online or offline follow-up events such as virtual investment visits and guide you through the fairly simple process of investing in Estonia.
