Editing Economy of Estonia (section)

===Restoration of independence, modernisation and liberalisation===
[[File:Tln1.jpg|thumb|[[Maakri]] has become the [[Central business district]] of Tallinn in the 21st century]]
[[File:GDP_per_capita_Baltics.svg|thumb|right|Real GDP per capita development of Estonia, Latvia and Lithuania]]
After Estonia [[Revolutions of 1989#Economic reforms|restored its independence in 1991]] and became a [[market economy]], it emerged as a pioneer in the global economy. Estonia styled itself as a bridge between East and West, adopting significant economic reforms and technological innovations.

In June 1992, Estonia replaced the [[Russian ruble|ruble]] with its own freely convertible currency, the [[Estonian kroon|kroon]]. A [[currency board]] was created and the new currency was pegged to the German Mark at the rate of 8 Estonian kroons per [[Deutsche Mark]]. When Germany introduced the [[euro]] the peg was changed to 15.6 kroons per euro.

In 1994, it became the first country in the world to adopt a [[flat tax]], with a rate of 26% regardless of personal income.<ref>{{cite journal | url=https://www.jstor.org/stable/27740067 | jstor=27740067 | title=The Spread of the Flat Tax in Eastern Europe: A Comparative Study | last1=Evans | first1=Anthony John | last2=Aligica | first2=Paul Dragos | journal=Eastern European Economics | date=16 March 2024 | volume=46 | issue=3 | pages=49–67 | doi=10.2753/EEE0012-8775460303 }}</ref> Between 2005 and 2008, this was reduced to 21% over several steps.<ref name="heritage">{{cite web |last=Laar |first=Mart |author-link=Mart Laar |title=The Estonian Economic Miracle |publisher=[[The Heritage Foundation]] |date=7 August 2007 |url=http://www.heritage.org/Research/WorldwideFreedom/bg2060.cfm |access-date=21 August 2012 |archive-date=3 March 2010 |archive-url=https://web.archive.org/web/20100303174230/http://www.heritage.org/Research/WorldwideFreedom/bg2060.cfm |url-status=unfit }}</ref>

In early 1992, both liquidity problems and structural weakness stemming from the communist era precipitated a banking crisis. As a result, effective bankruptcy legislation was enacted and privately owned; well-managed banks emerged as market leaders.<ref name="WorldBank1993">{{cite book |title=Estonia: The Transition to a Market Economy |publisher=World Bank |year=1993 |location=Washington, D.C. |isbn=978-0-8213-2351-9 |pages=45–50}}</ref> The fully electronic [[Tallinn Stock Exchange]] opened in early 1996, and was purchased by Finland's [[Helsinki Stock Exchange]] in 2001. Estonia joined the World Trade Organization in 1999.

From the early 2000s to the latter part of that decade, the economy experienced considerable growth. In 2000, Estonian GDP grew by 6.4%. After accession to the [[European Union]] in 2004, double-digit growth was soon observed. GDP grew by 8% in 2007 alone. Increases in labor costs, the imposition of tax on tobacco, alcohol, electricity, fuel, gas, and other external pressures (growing prices of oil and food on the global market) inflated prices in 2009.<ref name="IMF2011">{{cite book |title=Estonia: A Giant of the Baltics |publisher=International Monetary Fund |year=2011 |location=Washington, D.C. |isbn=978-1-61635-145-8 |pages=12–18}}</ref>