Industry is the leading driver of Estonia’s economy. It accounts for half the Gross Domestic Product (GDP) and a third of total employment. Engineering and metalworking are the chief industries, followed in importance by shale mining. Others include cement, textiles (cotton, linen, and wood), automobile components, and leather goods.
In 1991, the Union of Soviet Socialist Republics (USSR) formally recognized Estonia’s independence. Estonia is now an independent republic whose Constitution provides for a President with limited executive authority. The unicameral national legislative body is the Riigikogu, with 101 members elected to a fouryear term each. In 1992, Estonia became the first former Soviet republic to issue its own stable currency, the Kroon.
Estonia is one of the most advanced emerging markets in Central and Eastern Europe. In 1992, Estonia became a member of the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (World Bank), and the European Bank for Reconstruction and Development (EBRD). In 1999, Estonia became a member of the World Trade Organization. Last year, Estonia successfully joined the European Union (EU) and the North Atlantic Treaty Organization (NATO).
According to the IMF, Estonia successfully underwent remarkable transition and solid economic performance, backed up by an impressive and consistent record in implementing sound policies that have supported viable growth and a stable price level. Overall, macroeconomic developments remain favorable.
Recently, Estonia’s position in various international surveys has improved. It ranks 36th in the 2004 United Nations Human Development Report, an improvement of five notches. Worldwide, it is also the most successful country in transition, according to the Bertelsmann Transition Index (BTI), a measure to evaluate the success of reform in transition countries. In terms of competitiveness ranked by the World Economic Forum (WEF), it climbed into the 20th place from its previous 22nd ranking.
We congratulate the people and government of Estonia, and its Consulate in the Philippines, headed by Consul General Juan N. Peña, on the occasion of their National Day.