Economic impact
World War 2 drastically affected Estonia’s economy, all for the negative. The Republic of Estonia had a regularly functioning capitalist economy before World War 2 began. At this point in time, Estonia’s economy was based off of agriculture, but they did have a growing industrial sector. Their economy was very similar was very similar to Finland who had about the same GDP per capita at the time. Due to the USSR, Estonia’s economy transformed into socialism which destroyed the economy in the long term. The Soviet Rouble had become the only currency by Autumn of 1940. The physical destruction caused by the Nazis and the Soviets during the invasions also impacted the economy.
By 1987 close to the year of when the Soviets left, Finland’s GDP per capita was $14 370 USD, while Estonia’s was hovering at a low $2 000 USD per capita. Quite a few other European countries which had an equal or lesser value in economy also surpassed Estonia’s economy by the end of the cold war. This goes to show that the new system established was very inefficient. Nearly two decades after the fall of socialism, Estonia’s economy still is not on par with other European countries. This proves that World War 2 harshly made a negative impact on Estonia’s economy in the long term.