Estonia - Balance of payments

Since independence, Estonia has dismantled a Soviet-era system of trade barriers and tariffs to become one of the world's most free-trading nations. In the early 1990s, exports to the west quadrupled, helping to generate a strong surplus in the current account. More recently, however, the balance of trade on goods has been negative. nstrained by its currency board system, stands to grow by attracting foreign capital. Services and capital inflows have produced income in the form of foreign direct investment, which remains strong.

The US Central Intelligence Agency (CIA) reports that in 2002 the purchasing power parity of Estonia's exports was $3.4 billion while imports totaled $4.4 billion resulting in a trade deficit of $1 billion.

The International Monetary Fund (IMF) reports that in 2001 Estonia had exports of goods totaling $3.34 billion and imports totaling $4.13 billion. The services credit totaled $1.64 billion and debit $1.07 billion. The following table summarizes Estonia's balance of payments as reported by the IMF for 2001 in millions of US dollars.


Current Account -399
Balance on goods -787
Balance on services 578
Balance on income -281
Current transfers 151
Capital Account 5
Financial Account 306
Direct investment abroad -200
Direct investment in Estonia 539
Portfolio investment assets 13
Portfolio investment liabilities 83
Other investment assets -298
Other investment liabilities 171
Net Errors and Omissions -13
Reserves and Related Items 40

User Contributions:

Comment about this article, ask questions, or add new information about this topic: