129
Estonia The gap in GDP per capita relative to the upper half of OECD countries remains large although it has been narrowing steadily since the global financial crisis. Employment has been increasing and labour productivity growth has also contributed to narrowing the gap. Income inequality, which is around the OECD average, has moderately decreased in recent years. Greenhouse gas emissions per capita are high and failed to decrease over the past two decades. Some of the priorities identified previously in Going for Growth – on skill shortages and the high structural unemployment – have been addressed, notably by boosting vocational education, encouraging the recipients of disability benefits to return to work and by reducing the labour tax wedge on low-income earners. Improving research collaboration between domestic and foreign institutions, strengthening infrastructure, in particular by expanding access to European transport networks, and shortening corporate insolvency procedures would accelerate productivity growth. Further strengthening vocational education and training would boost productivity of low wage workers, thereby making growth more inclusive. Incentives for greener buildings and a smart electric grid would help improve energy efficiency, which is similar to the advanced OECD countries. Growth performance, inequality and environment indicators: Estonia C. Gaps in GDP per capita and productivity are narrowing steadily
A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio
2002-08 6.4 1.9 1.2 1.1 -0.3 4.3 2.3 2.0 0.1
2012-18 3.2 2.1 1.0 0.8 0.2 1.6 0.5 1.1 -0.5
Level
Annual variation (percentage points)
-40
2016 31.4 (31.7)*
2013-16 -1.4 (0)*
-50
7.2 (7.6)*
0.2 (0)*
-60
2016 12.9 (10.9)* 0.5 (0.3)* 0.0
Average of levels 2010-16 13.9 (11.3)* 0.6 (0.3)* 0.0
Gap to the upper half of OECD countries5 Per cent 0 -10 -20 -30
B. Inequality and environment
Gini coefficient3 Share of national disposable income held by the poorest 20%
GHG emissions per capita4 (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)
GDP per capita -70
GDP per hour worked
-80
Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933954838