ctor consolidation--nine banks
were reduced to five--and the important role that Swedish capital
played in the large banks (Swedbank's acquisition of a majority
stake in Hansapank has accounted for the large increase in foreign
direct investment). The IMF urged Estonia to maintain a stable
economy and good reputation in international markets and to avoid
populist policies in the run-up to March 1999 parliamentary
elections. The government completed restructuring of
state-controlled Estonian Telecom, the sale of 49% of which will be
the flagship privatization in 1999 and the largest public equity
transaction in the Baltics. Estonia expects to join the World Trade
Organization in 1999.

GDP: purchasing power parity--$7.8 billion (1998 est.)

GDP--real growth rate: 5.5% (1998 est.)

GDP--per capita: purchasing power parity?$5,500 (1998 est.)

GDP--composition by sector:
agriculture: 6.2%
industry: 24.3%
services: 69.5% (1997 est.)

Population below poverty line: 6.3% (1994 est.)

Household income or consumption by percentage share:
lowest 10%: 3.2%
highest 10%: 28.5% (1996)

Inflation rate (consumer prices): 6.5% (1998 est.)

Labor force: 717,000 (1997 est.)

Labor force--by occupation: industry 42%, agriculture and forestry
11%, services 47% (1996 est.)

Unemployment rate: 9.6% (1998 est.)

Budget:
revenues: $1.37 billion
expenditures: $1.37 billion, including capital expenditures of $NA
(1997 est.)

Industries: oil shale, shipbuilding, phosphates, electric motors,
excavators, cement, furniture, clothing, textiles, paper, shoes,
apparel

Industrial production growth rate: 3% (1996 est.)

Electricity--production: 8.065 billion kWh (1996)

Electricity--production by source:
fossil fuel: 99.96%
hydro: 0.04%
nuclear: 0%
other: 0% (1996)

Electricity--consumption: 5.581 billion kWh (1997)

Electricity--exports: 1.2 billion kWh (1997)

Electricity--imports: 210 million kWh (1997)

Agriculture--products: potatoes, fruits, vegetables; livestock and
dairy products; fish

Exports: $2.6 billion (f.o.b., 1998)

Exports--commodities: machinery and equipment 17%, textiles 16%,
food products 8%, transport equipment 8%, mineral products 8%,
chemical products 8% (1997)

Exports--partners: Finland, Russia, Sweden, Germany, Latvia (1997)

Imports: $3.9 billion (c.i.f., 1998)

Imports--commodities: machinery and equipment 21%, transport
equip