That dollar amount reflects a 39.9% gain since 2017 and a 27.5% uptick from 2020 to 2021.
Based on the average exchange rate for 2021, Estonia uses the euro which appreciated by 5% against the US dollar since 2017 and rose by 3.9% from 2020 to 2021. The stronger EU currency made Estonia’s exports paid for in weaker US dollars relatively more expensive for international buyers.
Estonia’s 10 most valuable export products are high temperature distilled coal tar oils, phone devices including smartphones, refined petroleum oils, cars, prefabricated buildings, electric energy, sawn wood, wood carpentry and builders’ joinery, shaped wood, then fuel wood and wood chips. That subset represents well over a third (36.9%) of Estonian exports in 2021.
Given Estonia’s population of 1.33 million people, its total $21.5 billion in 2021 exports translates to roughly $16,200 for every resident in the northern European country. That per-capita dollar amount exceeds the average $12,400 in 2020.
Estonia’s Top 10 Exports
The following export product groups represent the highest dollar value in Estonian global shipments during 2021. Also shown is the percentage share each export category represents in terms of overall exports from Estonia.
- Electrical machinery, equipment: US$2.3 billion (14.5% of total exports)
- Mineral fuels including oil: $1.9 billion (11.7%)
- Wood: $1.7 billion (10.5%)
- Machinery including computers: $1.5 billion (9.1%)
- Furniture, bedding, lighting , signs, prefab buildings: $1.3 billion (7.8%)
- Vehicles: $1 billion (6.3%)
- Articles of iron or steel: $619.4 million (3.8%)
- Optical, technical, medical apparatus: $512.2 million (3.2%)
- Plastics, plastic articles: $425.7 million (2.6%)
- Iron, steel: $321.6 million (2%)
Estonia’s top 10 exports accounted for nearly three-quarters (71.6%) of the overall value of its global shipments.
Gems and precious metals was the fastest grower among the top 10 export categories, up by 144.9% since 2020 led by coins and gold. In second place for improving export sales was optical, technical and medical apparatus which rose 12.8%. Estonia’s shipments of electrical machinery and equipment posted the third-fastest gain in value up by 9.2%.
The leading decliner among Estonia’s top 10 export categories was machinery including computers which fell -12.7% year over year.
At the more detailed four-digit Harmonized Tariff System (HTS) code level, Estonia’s top exported goods are high-temperature distilled coal tar oils (8.9% of the total), phone devices including smartphones (8.3%), refined petroleum oils (3.6%), cars (2.8%), prefabricated buildings (also 2.8%), electrical energy (2.6%), sawn wood (2.5%), wood carpentry and joinery (2.4%), shaped wood (1.5%) then fuel wood, wood chips and sawdust (also 1.5%).
Products Generating Estonia’s Greatest Trade Surpluses
The following types of Estonian product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Wood: US$1.2 billion (Up by 18.6% since 2020)
- Furniture, bedding, lighting, signs, prefabricated buildings: $1.1 billion (Up by 20.9%)
- Electrical machinery, equipment: $614.1 million (Up by 8.8%)
- Cereals: $179.4 million (Down by -18.1%)
- Dairy, eggs, honey: $157.7 million (Up by 10.6%)
- Articles of iron or steel: $140.6 million (Down by -0.3%)
- Woodpulp: $114.3 million (Up by 26.3%)
- Optical, technical, medical apparatus: $83.7 million (Down by -62.3%)
- Tanning, dyes, paints, varnishes, ink: $78.4 million (Up by 72.6%)
- Ships, boats: $74.5 million (Up by 102.4%)
Estonia has highly positive net exports in the international trade of lumber. In turn, these cashflows indicate Estonia’s strong competitive advantages under the wood product category.
Products Causing Estonia’s Biggest Trade Deficits
Estonia incurred an overall -$2.1 billion trade deficit during 2021, expanding by 136.6% from -$874.5 million in red ink one year earlier.
Below are exports from Estonia that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Estonia’s goods trail Estonian importer spending on foreign products.
- Vehicles: -US$991.3 million (Up by 53.2% since 2020)
- Machinery including computers: -$702.6 million (Up by 100.8%)
- Pharmaceuticals: -$665.5 million (Up by 25.1%)
- Plastics, plastic articles: -$486.9 million (Up by 47.2%)
- Iron, steel: -$374.7 million (Up by 81.2%)
- Rubber, rubber articles: -$147.8 million (Up by 37.9%)
- Beverages, spirits, vinegar: -$129.1 million (Up by 29.2%)
- Fruits, nuts: -$126.5 million (Up by 0.9%)
- Other chemical goods: -$121.1 million (Up by 37.3%)
- Gems, precious metals: -$120.7 million (Up by 791.6%)
Estonia has highly negative net exports and therefore deep international trade deficits for cars and, to a lesser extent, trucks, tractors, public transportation vehicles, bicycles and motorcycles.
These cashflow deficiencies clearly indicate Estonia’s competitive disadvantages in the international vehicles market, but also represent key opportunities for Estonia to improve its position in the global economy through focused innovations.
Estonian Export Companies
Given that Estonia is an emerging economy, it should come as no surprise that not one Estonian corporation appears on the Forbes Global 2000 list.
Wikipedia does outline some Estonian exports-related companies. Selected examples are shown below.
- Estonia Piano Factory (pianos)
- Liviko (vodka, other alcoholic beverages)
- Narva Oil Plant (shale oil)
- Rakvere Lihakombinaat (meat products)
- Rexer Ltd (automobiles)
- Saku Brewery (beer, cider, soft drinks, water)
- Tartu Mill AS (grains)
- Tondi Elektroonika (hearing aids)
Where Estonia’s Top Trading Partners Are Located
The latest available country-specific data shows that 77.8% of products exported from Estonia were bought by importers in: Finland (14.4% of the global total), Latvia (10%), United States of America (9.2%), Sweden (9%), Germany (6.2%), Netherlands (6.1%), Lithuania (5.9%), Russia (4.2%), United Kingdom (3.4%), Denmark (3.2%), Norway (3.1%) and Poland (also 3.1%).
From a continental perspective, 80.9% of Estonia exports by value were delivered to fellow European countries while 10.3% were sold to importers in North America. Estonia shipped another 6.7% worth of goods to Asia.
Smaller percentages went to Africa (1%), Latin America (0.7%)` excluding Mexico but including the Caribbean then Oceania (0.5%) led by Australia and New Zealand.
In macroeconomic terms, Estonia’s total exported goods represent 38.6% of its overall Gross Domestic Product for 2021 ($55.7 billion valued in Purchasing Power Parity US dollars). That 38.6% for exports to overall GDP in PPP for 2021 compares to 33.4% one year earlier. Those percentages suggest a relatively increasing reliance on products sold on international markets for Estonia’s total economic performance, albeit based on a short timeline.
Another key indicator of a country’s economic performance is its unemployment rate. Estonia’s unemployment rate was 6.516% at October 2021 down from 6.806% one year earlier according to the International Monetary Fund.
Estonia’s capital city is Tallinn.
See also Finland’s Top 10 Exports, United States Top 10 Exports, America’s Top Trading Partners, Top United States Trade Balances and Top EU Export Countries
Research Sources:
Central Intelligence Agency, The World Factbook: Country Profiles. Accessed on April 6, 2022
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on April 6, 2022
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average)
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on April 6, 2022
International Trade Centre, Trade Map. Accessed on April 6, 2022
Investopedia, Net Exports Definition. Accessed on April 6, 2022
Wikipedia, Gross domestic product. Accessed on April 6, 2022
Wikipedia, List of Companies of Estonia. Accessed on April 6, 2022
Wikipedia, Purchasing power parity. Accessed on April 6, 2022
