Estonia vs Romania development indicators, 2024

Demography and Health

Both Estonia and Romania exhibit similar birth rates, standing at 8 per 1,000 people in 2023, which places them at the same international ranking of 64. However, Estonia has a slightly lower crude death rate at 11.7 compared to Romania's 12.7, positioning Estonia higher at rank 35 versus Romania’s rank 25. Life expectancy at birth in Estonia is also better, with an average of 78.5 years, compared to Romania's 76.6 years. Estonia shows a significant advantage in the under-five mortality rate, at 2.1 per 1,000 live births, compared to Romania’s 6.6, which indicates stronger health outcomes for young children. Regarding mental health, Estonia has a higher suicide mortality rate of 14.9 per 100,000 population, while Romania records 9.6, reflecting regional mental health concerns.

Economy

Estonia's GDP per capita is significantly higher than Romania's, at $31,170 compared to Romania’s $20,072, ranking Estonia at 59 and Romania at 95. In terms of GDP per capita based on purchasing power parity (PPP), Estonia holds a slight edge with $49,334 versus Romania’s $48,712. Estonia is also more integrated into the global market, with exports of goods and services constituting 76.3% of its GDP, compared to just 35.6% for Romania, marking Estonia at rank 43 and Romania at 100. Romania has a higher inflation rate at 5.7%, compared to Estonia’s 3.5%. The positive net migration in Estonia contrasts sharply with Romania's negative figures, suggesting a trend of out-migration from Romania, which may have implications for the labor market and demographic changes.

Trade and Investment

Estonia's foreign direct investment (FDI) inflows are negative at -8.2% of GDP, indicating an outflow of investments relative to its GDP, which places it at 97th rank. In contrast, Romania, albeit struggling with its current account balance at -8.4% of GDP (102nd rank), has positive net inflows of FDI at 1.9%. Estonia's reliance on external trade is highlighted by its high levels of both exports and imports as percentages of GDP (76.3% and 75.7% respectively) compared to Romania's 35.6% in exports and 41.7% in imports, showcasing the differences in trade dependency dynamic.

Governance and Institutions

In terms of governance and institutional effectiveness, Estonia performs significantly better than Romania across several metrics. Estonia ranks 23 in control of corruption, outpacing Romania's 71, indicating a cleaner governance environment. The government's effectiveness (1.3) and regulatory quality (1.4) also rank higher than Romania’s -0.1 and 0.3 respectively, hinting at more reliable public services and business-friendly regulations in Estonia. Moreover, Estonia enjoys better political stability and less violence/terrorism, ranking 43, while Romania stands at 71. However, Estonia has a higher unemployment rate at 6.4% compared to Romania's 5.6%, which may suggest a tighter labor market in Estonia.

Infrastructure and Technology

Estonia outshines Romania in various aspects of infrastructure and technology. The logistics performance index shows Estonia at 3.5, significantly higher than Romania’s 2.9, indicating a more developed and efficient infrastructure system for trade and transport. Estonia also excels in digital engagement, with 93.2% of its population using the Internet compared to Romania's 89.2%, reflecting a more digitally connected society. Furthermore, Estonia invests relatively more in research and development, dedicating 1.8% of its GDP, compared to Romania's 0.5%, hinting at a commitment to innovation and technological advancement.

Environment and Sustainability

In the domain of environmental sustainability, Estonia demonstrates a commendable commitment to renewable energy, with consumption levels reaching 38% of total final energy consumption, compared to Romania’s 23.6%. This positions Estonia higher in the environmental rankings at 5 versus Romania at 10. Estonia also faces less water stress, withdrawing only 10.8% of available freshwater resources compared to Romania’s 7.4%. However, when looking at greenhouse gas emissions, Estonia's emissions per capita stand at 10.5 t CO2, significantly higher than Romania's 5.6 t CO2, prompting concerns regarding sustainable practices amid economic growth.