Publications and articles
General economic trends and knowledge-based economy
When we look at the Estonian economy in this century, the first thing that stands out is rapid economic growth, accompanied by high volatility due to a few crises (Figure 1, p. 13). The growth has been driven by convergence with wealthier countries, which has been greatly supported by various grants from the European Union (EU), especially from the Structural Funds. However, a much more significant role has been played by the smallness of the Estonian economy and its openness to foreign markets, which has exposed the Estonian economy to external shocks.
In 2013 Estonia’s gross domestic product (GDP) grew faster than the European Union average. At the same time, our close neighbours Latvia and Lithuania reported a much faster economic growth. In Estonia, the real growth of the GDP decelerated to 0.8% last year while the GDP of the European Union (EU) as a whole increased 0.1%.
Methodological changes in national accounts
Several improvements have been made to the European System of Accounts, which is in force since 1995. In September 2014, all European Union (EU) Member States will publish their time series of national accounts according to the new methodology.
Gross domestic product
2013 is characterised by the deceleration of the Estonian economy, although the economy grew faster than the average of the Member States of the European Union – 0.8%.
Estimation of regional gross domestic product
Regional gross domestic product (regional GDP or RGDP) is a breakdown of the national GDP by geographic regions. This indicator is used for monitoring the economic development of regions, making comparisons between regions, identifying regional policy targets and reviewing the results.
In 2012, Estonia’s gross domestic product still grew much faster than the European Union average, although the growth slowed down compared to the previous year. In Estonia, the real growth of the gross domestic product (GDP) was 3.2% last year, while the GDP of the European Union (EU) as a whole declined 0.3%.
Gross domestic product
In 2012, the Baltic States had the fastest growth of the gross domestic product (GDP) among the European Union Member States. Estonian economic growth was compared to other countries after Latvia and Lithuania on the third position, being 3.2% bigger than in 2011. In 2012, the GDP at current prices was17.0 billion euros.
Unit labour cost as an indicator of the competitiveness of the economy
Unit labour cost can be considered an indicator describing competitiveness. In order to maintain a high level of competitiveness, labour costs should not increase faster than labour productivity on a permanent basis. In the context of domestic prices, unit labour cost can also influence inflation. As Estonia’s economy depends greatly on the foreign market, our domestic market prices are influenced not only by unit labour cost, but also by the price of imported goods and services.