Flying to Estonia is relatively expensive and time-consuming, and rail connections to the south are poor prior to the completion of Rail Baltic, Swedbank said in its Nordic-Baltic Business Report.

According to the report, the conditions for doing business are generally good in Estonia, and the shortening of supply chains may even have a positive effect on the country's economy.

At the same time, the bank highlighted Estonian companies' incomplete use of the opportunities offered by digital technology, as online sales, the use of big data and social media are less common at Estonian businesses than in other European countries. Estonia also lags behind in the use of ultra-high-speed broadband.

Although doing business in Estonia is relatively easy, the country's global competitive index is dragged down by the small size of its market and the relatively poor health of its society — a result of unhealthy habits, which are due in part to the Soviet past, and long waiting lists for doctor's appointments, the Nordic-Baltic Business Report says.

The report points out that the massive fiscal stimulus made available by governments in the region should also be geared toward green investment, particularly in Norway and Estonia, whose ecological footprints are larger than those of other economies in the region.

The Nordic-Baltic Business Report takes a broad perspective on the strength and appeal of the Nordic-Baltic region from the business and investor points of view. The report provides an overview of similarities and differences, strengths, and shortcomings for those doing business and considering investment decisions in Estonia, Latvia, Lithuania, Sweden, Denmark, Finland, and Norway.

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