Estonia Economy

ECONOMY

According to campingship, Estonia is a country located in Europe. Estonia, which even before achieving independence had initiated reforms aimed at the establishment of the free market, is the Baltic Republic that can boast the greatest successes in the economic field. In fact, in the aftermath of independence, the country immediately embarked on the path of economic reforms and was the first of the former republics to issue its own currency. Right from the start, the development of private companies and, through the granting of tax reliefs, international investments were favored. Intensive commercial relations have also been re-established with neighboring Finland. This economic dynamism has made it possible to some extent to cope with the difficulties caused by the energy crisis following the detachment from the USSR (partly alleviated by the fact of owning the oil shale resource on its territory) and by the need to find other outlet markets for their own goods. Symptomatic of the country’s resoluteness of intent is the speed with which the free trade agreement with Latvia and Lithuania, the association agreement with the European Union, were signed. (June 1995) and his official candidacy to become a full member (December 1995). The prospect of integration into the European Union, which took place in May 2004, has then largely conditioned the Estonian economy, which has recorded rapid growth in recent years, mainly linked to a strong increase in trade and services. This increase was also largely determined by the increasingly consistent presence of Western investors, especially in the forestry, light industry and services sectors. In 2008, GDP was US $ 23,232 million, split between 2.6% of the primary sector and 29% and 68.4% of the industry and services sectors, respectively. However, signs of fragility remain, such as the trade deficit and a percentage of unemployed around 5, 5% concerning mainly ethnic minorities. As for the individual economic sectors, national agriculture is highly mechanized and produces good yields. The main crops consist of cereals (barley, wheat and oats), vegetables, sugar beets, fruit trees and flax. The breeding of livestock, especially cattle, but also pigs and poultry, feeds an established dairy industry. The forestry patrimony is intensively exploited, from whose timber the paper-making industry draws its sustenance. Fishing is practiced along the coasts, Tallinn is the most important fishing port. Among the natural resources, the country possesses, in the north-eastern area, deposits of oil shales, from which natural gas, petroleum, resins and chemicals are obtained. The gas is extracted from the shales themselves and then sent – via a 208 km long gas pipeline – to St. Petersburg and Tallinn. The electricity produced in the country is mainly of thermal origin. In addition to the processing of oil shale, the chemical and mechanical industries have a certain importance. The segment of components for telephony and telematics is growing. Other activities (textile, shipbuilding, paper, wood and food sectors) are located in the capital and in the cities of Tartu, Kohtla-Järve, Narva and Pärnu. After the separation from the USSR there was a significant decrease in industrial production, which caused an increase in unemployment. The country is well served with regard to terrestrial communications. By sea there are connections with Sweden and Finland. Tallinn is home to the region’s most important trading port and an international airport. The banking and insurance sectors are expanding. A stock exchange operates in Tallinn. As far as foreign trade is concerned, in the last decade the country has partly loosened its traditional relations with Russia to turn its interests to the West, thus returning to its historic role as a hinge between Western Europe and the Russian world.. Imports mainly concern raw materials and fuels and continue to outstrip exports (of chemical and mechanical products). The main trading partners are Finland, Russia and Sweden. After the opening of the borders, tourism is constantly growing, directed above all towards the capital and the areas of naturalistic interest. The country is mainly visited by Finns and tourists from the northern parts of Europe.

Estonia Economy

ENVIRONMENT

Almost half of the territory is occupied by pine, birch, fir and poplar forests. Another 20% is made up of swamps, peat bogs and other lagoon areas. The large mammals common in the country are elk, roe deer, fallow deer, wild boar. There are also lynxes and beavers, as well as a number of protected bird and amphibian species. Despite the extension of forests and protected areas in the country, the Estonian territory has serious pollution problems. This is mainly due to power plants, which, powered by fossil fuels, emit pollutants that compromise the quality of the air and sometimes also of water and land. Furthermore, the development of heavy industry during the Soviet period increased the phenomenon of acid rain and the dumping of toxic waste into the sea. However, the Tallinn government is showing great sensitivity to the problem, implementing numerous regulations to protect the environment. In Estonia approx. 31.1% of the territory is declared a protected area. The largest National Park is that of Laheemaa, located in the north of the country and also including a large stretch of coastal areas. There are also numerous natural and landscape reserves, both on the islands and on the mainland.