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Political and economic situation
Estonia

Estonia

1.Political, social and economic background and trends

1.4Political and economic situation

Last update: 22 July 2024
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The Government of the Republic is appointed by the President within 3 days after receiving a respective mandate from the Riigikogu or after the candidate for Prime Minister set up by the Riigikogu has presented him or her with the composition of the government.

According to the constitution, the Government of the Republic directs and coordinates the activities of governmental institutions. Governmental institutions comprise ministries, the state Chancellery and county governments as well as administrations and inspectorates and their local institutions authorised to represent executive state power.

There are 11 ministries in Estonia. Each ministry fulfils the tasks deriving from law and assigned by the Government of the Republic, and is the superior institution to administrations, inspectorates and other state organisations under its jurisdiction. The jurisdictions of ministries are established by the Riigikogu pursuant to the Government of the Republic Act.

Since regaining independence in 1991, Estonia has had 19 governments, all of which have been coalition governments comprising representatives of many political parties. There are 10 parties in Estonia. The largest of them, Keskerakond, Reformierakond, Isamaa, Sotsiaaldemokraatlik Erakond and Eestimaa Konservatiivne Rahvaerakond have also most frequently been the coalition members in different combinations.   

Estonian main development goals have been laid down in the long-term strategy “Estonia 2035” adopted in 2021. Estonia 2035 has been built around two central challenges: ensuring sustainable economic growth and improving the quality of life for its citizens. 

To tackle these challenges, five strategic goals have bee set in five main areas:

  • Smart and Active People: Emphasizing education, health, and well-being.
  • Strong and Innovative Economy: Promoting economic resilience and innovation.
  • Caring and Cooperative Society: Fostering social inclusion and community support.
  • High-Quality Living Environment: Ensuring sustainable and safe living conditions.
  • Innovative and Trustworthy Governance: Enhancing transparency and efficiency in governance.

The promotion of education and research has been one of the continuous priorities of the government.

According to Statistics Estonia, in 2023, the gross domestic product (GDP) of Estonia decreased by 3% compared to 2022.

In 2023, GDP at current prices was 37,7 billion Euros.

After several years of growth, Estonia's GDP has been falling since 2022, driven by a combination of high inflation rates, declining exports, and significant pressures on wages due to increasing labor costs. 

Statistics

Population by age group, 1 January 2000, 2005, 2009, 2014, 2015, 2016, 2017 and 2018

 

  0-9 10-19 20-29 30-39 40-54 55-64 65-
2000 143,147 210,738 189,239 186,624 278,713 157,980 205,630
2005 126,519 188,730 196,643 181,763 282,448 148,678 222,405
2009 141,508 142,713 208,691 185,980 272,497 159,151 228,887
2014 146,745 122,594 183,150 181,962 268,489 171,096 241,783
2015 146,657 122,781 176,690 182,747 266,873 171,171 246,352
2016 147,195 124,188 173,629 184,219 264,150 172,238 250,325
2017 147,050 126,105 166,965 185,325 262,965 172,751 254,474
2018 145,875 129,524 159,976 188, 315 263,639 173,422 258,382

Source: Statistics Estonia.  http://andmebaas.stat.ee/Index.aspx?lang=et&DataSetCode=RV021#  25/10/2018

Prognosis of population number (on the basis of 2014 data)

January 1, 2013 1,320,000
January 1, 2018 1,319,133
2040 1,195,000

Source: Statistics Estonia.  https://www.stat.ee/pressiteade-2014-02  25.10.2018

 

Births, deaths and natural increase, 2000, 2005, 2010, 2013, 2014, 2015, 2016 and 2017

Year Births Deaths Natural increase
2000 13,067 18,403 -5,336
2005 14,350 17,316 -2,966
2010 15,825 15,790  35
2013 13,531 15,244 -1,713
2014 13,551 15,484 -1,933
2015 13,907 15,243 -1,336
2016 14,053 15,392 -1339
2017 13,784 15,543 -1759

Source: Statistics Estonia. https://www.stat.ee/34268   25.10.2018

Migration of population, 2005, 2010, 2013, 2014, 2015, 2016 and 2017

Year Immigration Emigration
2005 1,436 4,610
2010 2,819 5,294
2013 4,098 6,740
2014 3,904 4,637
2015 15,413 13,003
2016 14,822 13,792
2017 17,616 12,358

Source: Statistics Estonia.  https://www.stat.ee/ppe-43537  25.10.2018

Level of education of population aged 15-74, (%) 2000, 2005, 2010, 2014, 2015, 2016 and 2017

  2000 2005 2010 2014 2015 2016 2017
First level of education or lower 25.2 22.5 19.7 15.6 15.5 17.8 17.7
Second level of education 51.4 50.4 51.0 51.6 51.1 48.5 47.8
Third level of education 23.4 27.1 29.3 32.8 33.4 33.7 34.5

Source: Statistics Estonia.  http://andmebaas.stat.ee/Index.aspx?lang=et&DataSetCode=TT126   25.10.2018


Labour status of population aged 15-69, 2000, 2005, 2010, 2014, 2015, 2016 and 2017

  2000 2005 2010 2014 2015 2016 2017
Labour force, thousand 680.5 663.9 673.3 666.1 675.5 682.3 690.6
employed, thousands 580.4 610.1 560.0 616.6 633.4 635.8 650.4
   unemployed, thousands 100.0 53.8 113.6 49.5 42.1 46.5 40.2
Inactive persons, thousands 333.3 333.5 289.9 264.5 251.1 245.7 232.9
Total, population aged 15-69, thousands 1013.8 999.4 963.4 930.6 926.6 928.0 923.5
Labour participation rate, % 67.1 66.4 69.9 71.6 72.9 73.5 74.8
Employment rate, % 57.3 61.0 58.1 66.3 68.4 68.5 70.4
Unemployment rate, % 14.7 8.1 16.9 7.4 6.2 6.8 5.8

Source: Statistics Estonia.  http://andmebaas.stat.ee/Index.aspx?lang=et&DataSetCode=TT469#  25.10.2018

Gross Domestic Product (GDP), 2013-2017

  2013 2014 2015 2016 2017
GDP at current prices, million euro 18,932.3 19,766,3 20,347.7 21,098.3 23,603.4

Change of GDP chain-linked volume compared to the

same period of the previous year (%)

1.9 2.9 1.7 2.1 4.7
GDP at current prices per capita, euros 14,364.4 15,036.6 15,478.1 16,034.7 17,925.8

Source: Statistics Estonia.  http://andmebaas.stat.ee/Index.aspx?lang=et&DataSetCode=RAA0012, 25.10.2018