Estonia is a thriving economy in the Baltic region. It has long been a hot spot for Finnish businesses and vacationers. The Baltic country is receiving significant inflows from abroad as European companies view areas of potential in the economy. Tallinn is the political and economic capital of the country.
The country has a strong geographical significance, situated on the Baltic sea and near Russia and prosperous Scandinavian countries. With a population of 1.3 million people who mostly speak the Estonian language, the country has a relatively small population for a European country, but has important advantages. These include:
- Liberal trade policy
- Access to the Silk Road
- Strong trade relations with both the EU and Russia
- Transparent trading system
- Robust IT Sector
- Thriving Startup Scene
The Economy of Estonia
In 2004, Estonia joined NATO and the European Union. It has had a stronger economic growth due to structural funds and foreign investment. It has a GDP of $26 billion. It has a growth rate of over 4.5%, though this has figure has been slowing since the country became an EU member. This relatively high GDP growth rate for a European economy presents numerous opportunities for growth.
In the past, Estonia benefitted by being a destination for outsourcing from other European countries. With the rise of China and high growth Emerging Markets, those strengths may be weakening. The country may be losing its competitive edge in a fast moving global economy.
Business Opportunities in Estonia
Estonia’s major trade partner is neighboring Finland. Key exports include machinery and equipment, electronics, refined petroleum, mineral products, agricultural products, wood products and metals.
Freight Transport is an important industry. The Port of Tallinn is an important port on the Baltic sea, which serves Russian and Finnish cargos. Air freight and road freight are also important sources of growth.
The country has a robust IT and Technology focus, originating from the 1950s when universities began promoting IT and Technology. Estonia exports Electronics and Telecommunications, and is located near Finland which has a strong technology sector.
There has traditionally been conflict between Estonians and Russians. In 2007, Estonians woke up to their internet being shut off. Risks can be exacerbated by Russian-EU and NATO relations. Economic growth can fluctuates with political environment changes.
About Market Research in Estonia
Market Research provides insight on Consumers, Business Managers and Healthcare stakeholders. In-person and Online research methods can be effective. Conducting research in Estonia can provide insight on consumers in the Baltic region. Common methods include: Focus Groups, In-Depth Interviews, Online Surveys, Online Communities and Strategy Research.