Estonia
Franchising association:
Tatjana Melehova
Baltic Franchise Foundation
Director Baltic Franchise Foundation
Elizabetes Str. 45/47
Riga, LV-1010, Latvia
phone (371) 67334346 fax (371) 67334350
e-mail:
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http://www.franchising.lv
Background:
After centuries of Danish, Swedish, German, and Russian rule, Estonia attained independence in 1918. Forcibly incorporated into the USSR in 1940 - an action never recognized by the US - it regained its freedom in 1991, with the collapse of the Soviet Union. Since the last Russian troops left in 1994, Estonia has been free to promote economic and political ties with Western Europe. It joined both NATO and the EU in the spring of 2004.
Geography
Area: 45,226 sq. km. (17,462 sq. mi.); slightly smaller than New Hampshire and Vermont combined.
Cities: Capital--Tallinn (2008 pop. 397,617), situated in the north of the country, on the Gulf of Finland. Other cities--university town of Tartu (102,414); the primarily Russian-speaking industrial towns of Narva (66,435) and Kohtla-Jarve (45,093) in the north-east of Estonia; Parnu on the western coast (44,016); and Viljandi in the rural south (20,117). The last population census was held in 2000.
People
Nationality: Noun and adjective--Estonian(s).
Population (2008): 1.340 million.
Annual growth rate (2007): -1.22%. Birth rate (2007)--11.76/1,000. Death rate (2007)--12.98/1,000. Net migration (2006)--3.2 migrant(s)/1,000 population. Density--31/sq. km. Urban dwellers--70%.
Ethnic groups: Estonians 68.6%, Russians 24.9%, Ukrainians 2.1%, Belarusians 1.2%, Finns 0.8%, other 2.4%.
Religions: Evangelical Lutheran; the Estonian Apostolic Orthodox, subordinated to Constantinople; the Estonian Orthodox, subordinated to the Moscow Patriarchate; Roman Catholic; Baptist; and other.
Languages (2000 census): Estonian (official) 67.3%, Russian 29.7%, other 2.3%, unknown 0.7%.
Education: Years compulsory--9. Attendance--218,600 students at 550 schools, plus 50,800 university students. Literacy--99.8%.
Work force: 659,600.
Economy
GDP (2007): $21.3 billion.
Real GDP growth rate (2007): 7.1%.
Per capita GDP (2007): $15,868.
Inflation (2007): 6.6%.
Unemployment (2007): 4.7%.
Natural resources: Oil shale, phosphorus, limestone, blue clay.
Agriculture (3% of 2007 GDP): Products--livestock production (milk, meat, eggs) and crop production (cereals and legumes, potatoes, forage crops). Arable land--433,100 hectares.
Industry (21% of 2007 GDP): Types--engineering, electronics, wood and wood products, and textiles.
Services (60% of 2007 GDP): Transit, information technology (IT), telecommunications, business services, retail, construction, real estate.
Public sector (16% of 2007 GDP): Public services, education, healthcare, social services.
Trade: Exports (2007)--$11 billion. Partners--Finland 18%, Sweden 13%, Latvia 11%, Russia 8.8%, Germany 5.2%, Lithuania 5.7%, U.S. 4%. Imports (2007)--$15.5 billion. Partners--Finland 16%, Germany 12.8%, Russia 10%, Sweden 10%, Latvia 7.6%, Lithuania 6.8%.
Exchange rate (2007): 11.4 kroon (EEK)=U.S.$1.
Foreign direct investment (2007): Sweden 39.7%, Finland 24.6%, Netherlands 5.7%, Denmark 4.4%, Russia 2.6%, Norway 2.5%, Germany 2.4%, Cyprus 2.3%, Luxembourg 2%, U.K. 2%, U.S. 1.6%.
Estonia, a 2004 European Union entrant, has a modern market-based economy and one of the highest per capita income levels in Central Europe. Estonia's successive governments have pursued a free market, pro-business economic agenda and have wavered little in their commitment to promarket reforms. Tallinn's priority has been to sustain high growth rates - on average 8% over the last four years. The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, and Germany. The current government has pursued relatively sound fiscal policies, resulting in balanced budgets and low public debt. Rapid growth, however, has made it difficult to keep inflation and large current-account deficits from soaring, putting downward pressure on the country's currency. The government has not given up on joining the euro, but has repeatedly postponed its euro adoption target. Estonia's economy slowed down markedly and even fell into recession in mid-2008, primarily as a result of an investment and consumption slump following the bursting of the real estate market bubble.
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NewsThe worldwide chain of McDonald's fast food restaurants plans to invest around US $1 bn into developing its franchises in Europe next year, the Reuters newswire reported. At the same time, they will pay greater attention to developing countries. "The potential for growth in Central and Eastern Europe is huge. We have only opened 350 restaurants in Ukraine, Poland and Romania, which have a combined population of more than 100 million and flourishing economies", says Executive Director Ralf Alvarez. There are 63 McDonald's restaurants in Ukraine in 19 cities. The total amount of investments since they began operating in Ukraine (since 1997) exceeded US $100 mn. McDonald's Ukraine has around 5,000 employees across the country. Reuters Sep 2008
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