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Economy of Estonia


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As a member of the European Union, Estonia is considered a high-income economy by the World Bank. The country is ranked 16th in the 2012 Index of Economic Freedom, with the freest economy in Eastern Europe and the former Soviet Union. Because of its rapid growth, Estonia has often been described as a Baltic Tiger. Beginning 1 January 2011, Estonia adopted the euro and became the 17th eurozone member state.

According to Eurostat newsrelease published at 21 October 2011, Estonia has the lowest ratio of government debt to GDP among EU countries as 6.7 percent at the end of 2010. The world media has lately started to describe Estonia as a Nordic country, emphasizing the economic, political and cultural differences between Estonia and its less successful Baltic neighbors.

A balanced budget, almost non-existent public debt, flat-rate income tax, free trade regime, competitive commercial banking sector, innovative e-Services and even mobile-based services are all hallmarks of Estonia's market economy.

Estonia is producing ca 75% of its consumed electricity. Over 85% of it generated with locally mined oil shale.. Alternative energy sources such as wood, peat, and biomass make up approximately 9% of primary energy production. Renewable wind energy part was ca 6% of total consumption in 2009. Estonia imports needed petroleum products from western Europe and Russia. Oil shale energy, telecommunications, textiles, chemical products, banking, services, food and fishing, timber, shipbuilding, electronics, and transportation are key sectors of the economy. The ice-free port of Muuga, near Tallinn, is a modern facility featuring good transshipment capability, a high-capacity grain elevator, chill/frozen storage, and brand-new oil tanker off-loading capabilities. The railroad serves as a conduit between the West, Russia, and other points to the East.

Estonia today is mainly influenced by developments in Finland, Sweden and Germany, it's three largest
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