Estonia - Country Commercial Guide
Market Overview

Discusses key economic indicators and trade statistics, which countries are dominant in the market, and other issues that affect trade.

Last published date: 2020-10-15

Estonia has been a member of the European Union since 2004 and adopted the euro as its official currency on January 1, 2011. Estonia formally joined the OECD in December 2010.

It takes under 20 minutes to establish a company on the Internet in Estonia and companies registered in Estonia do not have to pay income tax for re-invested profits. Foreign and domestic investments in Estonia are treated equally under the law. 99 percent of banking transactions in Estonia are conducted electronically.

GDP growth in 2019 was 4.3 percent but the economy is estimated to contract in 2020 by 10 percent due to the COVID-19 pandemic. This crisis has particularly hit the most labor-intensive sectors of the economy and unemployment is expected to increase to 13 percent by the end of the year.

According to the U.S. Census Bureau’s Foreign Trade Division, the principal exports in 2019 from the United States were computer and electronic products, machinery, and agricultural products.  U.S. exports to Estonia were $410 million and Estonian exports to the United States were $1 billion.

Estonian membership in the EU has not had major bilateral trade implications for the United States. Estonia’s main trading partners are Finland, Sweden, Germany, and Russia, while the U.S. share of Estonia’s foreign trade is approximately 1 percent. Estonia has well-developed ports and transit infrastructure that serve European trade with eastern partners, including Russia.