Estonian Economy

Estonian Economy  | read this item

Estonia is said to be a developing country with 7.1% of real GDP growth for the year of 2007. GDP per capita was $21,800 and inflation expressed 6.6%.

There were some economic reforms that affected the development of the country’s economy to a certain extent. These reforms took place on 1991 – 1992. For instance, the national currency of Estonia was established in 1992 through monetary reforms. All in all, the government was trying to eradicate inflation and win the global cash crisis.

Moreover, due to the reforms, macroeconomic stabilization was performed. According to this, reforms were implemented from the top level to lower level. That gave Estonia new expectations and hopes. Though, the government understood that strict regulation of law was needed.

Private ownership was said to one of the main economic transitions. The goal was to build the economy with well-established property rights and privatization of public enterprise in order to make the market work in a proper way.

As a result, during the recent years, Estonia showed significant economic growth expressed in the rise from 11% to 12%. Poverty and inequality have decreased and Estonia is characterized as one of developed countries.

Topics: country, currency of estonia, economic transitions, economy, Estonia, GDP, gdp per capita, government, growth, inflation, level, macroeconomic stabilization, monetary reforms, national currency, real gdp