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General macroeconomics information since regaining independence in 1991, Baltic Republics can be quoted as "the most successful reformers of all the ex-Soviet republics". After a few years of economic sink and explosive inflation rates, Latvia, Estonia and Lithuania have been able to pull back from the economic wreckage, registering positive rate of growth since 1995. Tough budgetary and monetary policies, a clear-cut privatization process, the slashing down of virtually all Soviet-era subsidies - coupled with the convenient maritime location and the closeness to rich neighbours as are Scandinavian countries, have been the key factors of this positive performance.

The Baltic states had the highest growth rates in Europe between 2000 and 2006, and this has continued in 2007. In 2006 the economy in Estonia grew by 11.2% in gross domestic product, while the Latvian economy grew by 11.9% and Lithuania by 7.5%. All three countries have seen their rates of unemployment falling below the EU average by February 2006. They are currently members of the European Union since 1 May 2004 and WTO since November 1999. All three countries are slated to adopt the Euro around 2010.

Estonia:

The Republic of Estonia now has one of the strongest economies of the new member states of the European Union with a low inflation rate, and high GDP growth. Its economy is rated as high income by the World Bank. Since re-establishing independence, Estonia has styled itself as the gateway between East and West and aggressively pursued economic reform and integration with the West. Estonia's market reforms put it among the economic leaders in the former COMECON area. A balanced budget, almost non-existent public debt, flat-rate income tax, free trade regime, fully convertible currency backed by currency board and a strong peg to the euro, competitive commercial banking sector, hospitable environment for foreign investment, innovative e-Services and even mobile-based services are all hallmarks of Estonia's free-market-based economy. In January 2006 the personal income tax rate was reduced to 23%. The income tax rate will be decreased by 1% annually to reach 18% by January 2010.

The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden and Germany. In 2007, however, a large current account deficit and rising inflation put pressure on Estonia's currency, which is pegged to the euro, highlighting the need for growth in export-generating industries. Estonia exports machinery and equipment (33% of all exports annually), wood and paper (15% of all exports annually), textiles (14% of all exports annually), food products (8% of all exports annually), furniture (7% of all exports annually), and metals and chemical products. Estonia also exports 1.562 billion kilowatt hours of electricity annually.

Latvia:

Since the year 2000 Latvia has had one of the highest (GDP) growth rates in Europe. In 2006, annual GDP growth was 11.9% and inflation was 6.2%. Unemployment was 8.5% — almost unchanged compared to the previous two years. However, it has recently dropped to 6.1%, partly due to active economic migration, mostly to Ireland and the United Kingdom. The fast growing economy is regarded as a possible economic bubble, because it is driven mainly by growth of domestic consumption, financed by a serious increase of private debt, as well as a negative foreign trade balance. The prices of real estate, which were appreciating at approximately 5% a month, are perceived to be too high for the economy, which mainly produces low valued goods and raw materials. As stated by Ober-Haus, a real estate company operating in Poland and the Baltics, the prices of some segments of the real estate market have stabilised as of summer 2006 and some experts expect serious reduction of prices in the near future.

Lithuania:

In 2003, prior to joining the European Union, Lithuania had the highest economic growth rate amongst all candidate and member countries, reaching 8.8% in the third quarter. In 2004 — 7.3%; 2005 — 7.6%; 2006 — 7.4%; 2007 Q3 — 10.8% growth in GDP reflects the impressive economic development. Most of the trade Lithuania conducts is within the European Union. By UN classification, Lithuania is a country with a high average income. The country boasts a well developed modern infrastructure of railways, airports and four lane highways. It has almost full employment, with an unemployment rate of only 2.9%.

In Lithuania there are concentrated major biotech producers in the Baltic countries, as well as laser equipment. Like other countries in the region (Estonia, Latvia) Lithuania also has a flat tax rate rather than a progressive scheme. Lithuanian income levels still lag behind the rest of the older EU members, with per capita GDP in 2007 at 60% of the EU average. Lower wages may have been a factor that in 2004 influenced the trend of emigration to wealthier EU countries, something that has been made legally possible as a result of accession to the European Union. In October of 2007 income tax was reduced to 24%. Income tax reduction and 19.1 % annual wage growth is starting to make an impact with some emigrants gradually beginning to come back. The latest official data show emigration in early 2006 to be 30% lower than the previous year, with 3,483 people leaving in four months.