Estonia is a nation in northern Europe that has a border with the Baltic Sea and the Gulf of Finland. The nation, which was previously a member of the Soviet Union, has a distinctive landscape made up of rocky coastlines, woods, numerous waterways, and islets. There are 2,222 islands and territories in Estonia. It has the most technologically developed digital nation in the world, claims Wired. It also has a 99.8% literacy ratio, which is exceptionally high. With 1.3 million inhabitants and a demographic size of 28.4 people per square kilometer, the nation is one of Europe’s least compactly inhabited nations. Its landmass is 45,227 square kilometers.
Estonia is classified by the European Union as having a high-revenue industry. Its GDP is USD 25.92 billion. Its economic system is distinguished by a uniform revenue tax, a 6.7% public debt ratio, a free trading agreement, a stable national budget, a vibrant financial market, and mobile-based activities.
The main industries in Estonia that significantly contribute to the nation’s stable economy are listed below.
Manufacturing
The manufacture of chemical goods, fabrics, electronics, gear, gadgets, oil shale power, and wood are all included in Estonia’s manufacturing industry. Another one of Estonia’s sectors is shipbuilding. Firms in the shipbuilding industry produce small boats that are used for both business and leisure activities. The professional shipbuilding industry’s overall revenue in 2015 was £29.09 million.
In Estonia, the manufacturing of machines and apparatus is a part of metal production. There are more than 1,300 businesses that engage in the sector, there are approximately 14,000 employees. There is a concentration of the metal industry in Tartu, Ida-Viru, and Tallinn and its environs.
Oil shale industry
Nearly all of Estonia’s electrical needs are met locally by utilizing oil shale that is produced locally. Estonia has one of the most advanced oil shale industries in the world, producing 80% of the oil shale utilized globally. The Narva power station, managed by Eesti Energia, is the main oil shale power station in the nation. More than 90% of the country’s electricity is supplied by this facility.
The Narva power plant receives 9–13 million tonnes of oil shale annually. According to estimates, Estonia’s crude oil resources can produce 20 million barrels of oil annually when everything is running smoothly. The oil shale industry hired 6,500 workers in 2012. Estonia uses firewood, biofuels, peat, and sustainable wind energies as alternative energy resources. 4% of the nation’s GDP comes from the oil shale area.
Services
In regards to its input to the GDP of the nation, the services industry is by far Estonia’s largest enterprise. It primarily comprises the banking, transit, and communications subareas. These subsectors are further explained below:
Transport
Because of the good facilities in the transport industry, Estonia’s trading activities have grown. Both humans and cargo can traverse the water quickly through the excellent ports in the country. The two major ports in the nation are Sillamäe and Muuga. Muuga is the most modern deepwater port. On the other side, Sillamäe is well known for being the EU’s furthest east port. It is a multipurpose port that can handle various types of goods, including container freight, and petroleum products. Sillamäe is located in the free zone as well, similar to Muuga port. In terms of air travel, Tartu Airport offers regular overseas flights from Estonia to several locations across the world.
Telecommunications
Estonia’s telecommunications industry has drawn significant international investment, particularly from Nordic nations that have made investments in advanced telecommunications and information infrastructures. Among the Eastern European nations, the country has the best broadband DSL access. Estonia has a broad array of mobile phone lines and more than 1,006 free Wi-Fi hotspots.
Banking
Modern and effective banking facilities are offered in Estonia. The industry also takes pride in having one of the continent’s best-regulated institutions and a very sophisticated online banking service. In Estonia, there are seven banking organizations with operating licenses. 90% of the institutions functioning in Estonia are owned by Scandinavian nations, and the remaining institutions are outposts of Swedish and Danish banks. Because of the banks’ high capitalization, the customers’ money is properly protected and there are few chances of insolvency.
