>Growth And Business Advantages
Estonia is a Northern European hub for Industrial, Supply Chain and GBS activity and a world leader in IT. As IT becomes the value driver across all industries, Estonia is uniquely positioned as the scalable location of choice for knowledge and digital business.
IT / R&D / software
Estonia is the world’s most digitally enabled nation, offering a unique combination of talent, environment, and innovation. Our IT R&D ecosystem enjoys global proof of concept, being trusted by global organisations such as Kuehne+Nagel and NATO and producing unicorn startups like Wise and Bolt.
Estonia is a cashless society with over 99% of financial transactions occurring digitally. Electronic ID and Blockchain are widely used in FinTech applications. 80+ FinTechs ranging from innovative startups such as Wise to Blockchain leader Guardtime make Estonia a global centre of excellence for FinTech.
The most advanced cyber security country in Europe, Estonia has unique expertise in the research, development and management of cyber security solutions and systems. Home to NATO CCDCOE, Guardtime and Malwarebytes, Estonia is trusted to keep the digital economy safe.
Estonia developed X-Road, its proprietary decentralised, distributed system in 2001 and has utilised Blockchain since 2008. World-class technical skills supported by practical experience implementing public and permissioned Blockchain’s place Estonia at the forefront of the emerging Blockchain economy.
Swedbank has raised its forecast for Estonia's economic growth this year by 5 percentage points to 8 percent, up from 3 percent in the spring.
An economic growth of 8 percent would represent the highest growth for the past 15 years.
Swedbank said it raised its forecast for this year, as GDP growth in the first quarter of the year was stronger than previously expected.
"This sharp jump in growth provided additional momentum also for the rest of the year. This year's economic growth is going to be broad-based, driven by strong private consumption, investment and exports," Tonu Mertsina, chief economist at Swedbank Estonia, said at the presentation of the economic forecast.
Next year, however, gross domestic product (GDP) growth is expected to slow to 5 percent, according to Swedbank's latest Economic Outlook. In April, the bank expected growth of 4.3 percent in 2022.
The GDP growth forecast for 2023 by Swedbank is 3.2 percent.
The Swedbank Estonia chief economist said that the Estonian economy has quickly emerged from last year's recession. In particular, Estonia's GDP growth in the first quarter was one of the fastest among the countries of the European Union (EU), and the strong recovery of the economy continued in the second quarter.
Overall confidence in the economic sectors meanwhile has risen to its highest level in 14 years. The production volume of the manufacturing industry in June was close to its peak registered two years ago, and the growth in the sales volume of retail companies rose to double digits in the second quarter. Mertsina said that expectations for industrial growth and demand in the services sector are high for the near term.