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Tallinn is the centre of Estonian political and business life. With its population 435,839, the capital is the driving force of the country's economy. The city is home to about half of all Estonian companies, which are responsible for ca 50-60% of GDP and nearly 3/4 of total business profit.

More than half of the companies operating in Estonia on foreign capital are located in Tallinn. The economy is closely connected with the neighbouring Scandinavian countries. This has attracted extensive foreign investments, facilitated the acquisition of modern expertise and boosted trade.