1. The Estonian Economy and Foreign Direct Investments
Tallinn 19 April, 2007
Stefan Andersson
Enterprise Estonia

2. Estonia at a Glance Population Area Language Currency GDP per Capita
GDP Growth
Export
1.34 million
45,000 km2
Estonian
EUR 1 = EEK
9 800 EUR
11.4 % (2006)
58 % of GDP (2006)
                                                                        
                                                                        
                                                                        

3. Population in the Baltic Sea Region
Denmark million
Sweden
Finland
Norway
Germany*
Poland**
Estonia
Latvia
Lithuania
Russia***
TOTAL million
*Schlesw.-Hol, Meckl-VP, Hamburg
** Entire Poland
***St Petersburg, Kaliningrad, Len. oblast

4. Flight Connections flights/week flight hours Helsinki 49 0.5
Stockholm
Vilnius
Copenhagen
Oslo
Riga
Prague
Amsterdam
London
Frankfurt
Berlin
Warsaw
Brussels
Göteborg
Palanga
Hamburg
Paris
Vienna
Moscow
Barcelona
Milan
Kiev
Dublin
Dubrovnik
Simferopol
Source: Tallinn Airport,
Summer 2007 timetable

5. Map of Estonia

6. Stable Business Environment
EU and NATO Membership.
Low Tax Level.
Flexible Labour Market.
EURO-pegged Currency.
Balanced State Budget.
Equal Treatment of all Investors. Low State Intervention.

7. GDP Growth Q4 2006
Source: EUROSTAT

8. GDP Growth and Inflation 1996-2006
Source: Statistical Office of Estonia

9. Natural Resources Timber: 2 mln ha, 48% of Estonia covered by forest
Wood-processing industry closely connected to the Scandinavian forestry companies
Energy
Oil shale reserves 1,8 bln tons. Annual production 14 mln tons. 80% for electricity production.

10. Average Gross Salary in Estonia, (EUR/Month)
Source: Statistical Office of Estonia

11. Knowledge Intensive Jobs (% of all jobs)
Source: European Commission

12. Taxes in Estonia unemployment insurance 0.3 (employer) 0.6 (employee)
* no corporate income tax on reinvested earnings
Source: Enterprise Estonia

13. Corporate Income Tax Rates in Eastern Europe, 2007
Source: Enterprise Estonia (

14. Corporate Income Tax Rates in Europe 2007
* no tax on reinvested profits
Source: Enterprise Estonia; WIR 2005

15. IT development in Estonia
e-elections (local 2005, national 2007)
e-government project (august 2000)
e-tax board - income tax statements can be filled out via internet (spring 2001)
digital signature act came into force (december 2000)
90% electronic transactions, % of the population using internet banking (end 2005)
e-billing (july 2000)
world´s first MPS project for society (may 3, 2000)
mobile parking (july 1, 2000)

16. Networked Readiness Index 2006 - 2007
1. Denmark
2. Sweden
3. Singapore
4. Finland
5. Switzerland
6. Netherlands
7. USA
8. Iceland
9. United Kingdom
10. Norway
16. Germany
20. Estonia
23. France
28. Portugal
30. Slovenia
32. Spain
39. Lithuania
42. Latvia
Source: World Economic Forum

17. internet users per 100 inhabitants 2005
Source: International Telecommunication Union

18. mobile phone subscribers per 100 inhabitants 2005
Source: International Telecommunication Union

19. Index of Economic Freedom Rankings 2007
1. Hong Kong
2. Singapore
3. Australia
4. United States
5. New Zealand
6. United Kingdom
7. Ireland
8. Luxembourg
9. Switzerland
10. Canada
11. Chile
12. Estonia
13. Denmark
16. Finland
21. Sweden
22. Lithuania
30. Norway
31. Czech republic
41. Latvia
45. France
60. Italy
Source: Wall Street Journal; The Heritage Foundation

20. Ease of Doing Business Ranking 2006
1. Singapore
2. New Zealand
3. USA
6. UK
7. Denmark
10. Ireland
11. Japan
13. Sweden
14. Finland
16. Lithuania
17. ESTONIA
21. Germany
24. Latvia
35. France
36. Slovakia
52. Czech Republic
61. Slovenia
66. Hungary
75. Poland
96. Russia
Source: World Bank Group

21. Growth Competitiveness Rankings 2006-2007
1. Switzerland
2. Finland
3. Sweden
4. Denmark
5. Singapore
6. USA
7. Japan
8. Germany
9. Netherlands
10. United Kingdom
12. Norway
18. France
25. Estonia
28. Spain
29. Czech republic
36. Latvia
40. Lithuania
41. Hungary
48. Poland
Source: World Economic Forum

22. Corruption Perception Index 2006
20. USA
24. ESTONIA
28. Slovenia
41. Hungary
45. Italy
46. Czech Republic
46. Lithuania
49. Latvia
61. Poland
163. Haiti
1. Finland
1. Iceland
1. New Zealand
4. Denmark
5. Singapore
6. Sweden
7. Switzerland
8. Norway
16. German
18. France
Source: Transparency International

23. Capital Hospitality Index 2006
16. Germany
18. Sweden
21. Japan
22. Latvia
29. Lithuania
31. Slovenia
32. Slovakia
33. Czech Republic
35. Poland
37. Hungary
1. Denmark
Finland
Iceland
4. USA
5. UK
6. Singapore
Australia
ESTONIA
9. Ireland
14. Norway
Source: Forbes

24. Foreign Direct Investments (FDI)
Equal Rights with Local Businesses
Right to Purchase and Own Land*
Unrestricted Profit Repatriation
* Approval needed when acquiring more than 10 ha of land

25. FDI into Estonia 1997–2006
Source: Bank of Estonia

26. FDI Stock in Estonia, by country, as of 31 December 2006
total stock billion EUR
Source: Bank of Estonia

27. FDI Stock in Estonia, by Activity, as of 31 December 2006
total stock billion EUR
Source: Bank of Estonia

28. regional distribution of fdi, end 2005
Source: Bank of Estonia

29. fdi per capita, (stock, USD)
Source: UNCTAD

30. Estonian Exports and Imports 1997 – 2006
Source: Statistical Office of Estonia, special trade method

31. Estonian Exports by Country, 2006 January-June
total: 7.6 bln EUR
Source: Statistical Office of Estonia, special trade method

32. Estonian Exports by Commodity Groups, 2006
total: 7.6 bln EUR
Source: Statistical Office of Estonia, special trade method

33. Estonian Imports by Country, 2006
total: 10.3 mio EUR
Source: Statistical Office of Estonia, special trade method

34. Estonian Imports by Commodity Groups, 2006
total: 10.3 mio EUR
Source: Statistical Office of Estonia, special trade method

35. Industrial Structure
Source: Statistical Office of Estonia

36. Major Foreign Investors
HK-Ruokatalo
Atria
Larvik Cell/Heinzel
Maersk
Borås Wäfveri
Tolaram Grupp
Severstaltrans
Citycon
Swedbank
SEB
TeliaSonera
Tele2
Elisa
Stora Enso
Hallberg-Sekrom
Autoliv

37. Major Foreign Investors

38. general and industry specific information about Estonia and its investment and business (subcontracting and trade) opportunities
useful contacts with the public and private sector (utilities, law firms, consultants, recruitment, industrial real estate, …)
legal matters (how to establish a company, visa and residence permit questions, etc)
arrangement of company visits
assistance in finding industrial property