Since the 1990s the population of Estonia has decreased (Figure 1). As of 1 January 2008 the population of Estonia was 1,340,935. The population is likely to decrease in the future. According to various forecasts, in 2020 the population of Estonia will be 1,311,000 (Giannakouris 2008) to 1,320,000 (Population 2007). In the more distant future the decrease of the population will strengthen further. The population will decrease in spite of the rise in the birth rate. Against the background of longer life expectancy and average birth rate the reason for the decrease lies in the weak birth rate through 1990-2000. Only positive immigration could make considerable changes to this age structure. A negative migration balance would worsen the demographic situation even further. Estonia’s problem against the background of the decreasing population lies in the extremely small size of its population, which may increase the risks of functioning of the state and markets. However, Estonia already has one of the highest immigration rates in Europe.