Finland

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Economics

Economy - overview

Finland has a highly industrialized; largely free-market economy with per capita output roughly that of Austria, Belgium, the Netherlands, and Sweden. Trade is important with exports accounting for over one third of GDP in recent years. Finland is strongly competitive in manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in high-tech exports such as mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. Finland had been one of the best performing economies within the EU in recent years and its banks and financial markets avoided the worst of global financial crisis. However, the world slowdown hit exports and domestic demand hard in 2009, with Finland experiencing one of the deepest contractions in the euro zone. A recovery of exports, domestic trade, and household consumption stimulated economic growth in 2010. The recession left a deep mark on general government finances and the debt ratio, turning previously strong budget surpluses into deficits. Despite good growth prospects, general government finances will remain in deficit during the next few years. The great challenge of economic policy will be to implement a post-recession exit strategy in which measures supporting growth will be combined with general government adjustment measures. Longer-term, Finland must address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.

GDP (purchasing power parity):

$186 billion (2010 est.)

country comparison to the world: 56

$180.3 billion (2009 est.)

$196.5 billion (2008 est.)

note: data are in 2010 US dollars

 

GDP (official exchange rate):

$239.2 billion (2010 est.)

 

GDP - real growth rate:

3.1% (2010 est.)

country comparison to the world: 121

-8.2% (2009 est.)

0.9% (2008 est.)

GDP - per capita (PPP):

$35,400 (2010 est.)

country comparison to the world: 34

$34,400 (2009 est.)

$37,500 (2008 est.)

note: data are in 2010 US dollars

 

GDP - composition by sector:

agriculture: 2.9%

industry: 29%

services: 68.1% (2010 est.)

 

Labor force:

2.672 million (2010 est.)

country comparison to the world: 106

 

Labor force - by occupation:

agriculture and forestry: 4.9%

industry: 16.7%

construction: 7.1%

commerce: 19.4%

finance, insurance, and business services: 12.8%

transport and communications: 6.3%

public services: 32.8% (2009)

 

Unemployment rate:

8.4% (2010 est.)

country comparison to the world: 98

8.2% (2009 est.)

 

Population below poverty line:

NA%

 

Household income or consumption

by percentage share:

lowest 10%: 3.6%

highest 10%: 24.7% (2007)

 

Distribution of family income - Gini index:

26.8 (2008)

country comparison to the world: 131

25.6 (1991)

 

Investment (gross fixed):

18.8% of GDP (2010 est.)

country comparison to the world: 132

 

Budget:

revenues: $125.2 billion

expenditures: $131.9 billion

note: Central Government Budget (2010 est.)

 

Taxes and other revenues:

52.4% of GDP (2010 est.)

country comparison to the world: 17

 

Budget surplus (+) or deficit (-):

-2.8% of GDP (2010 est.)

country comparison to the world: 91

 

Public debt:

48.4% of GDP (2010 est.)

 

country comparison to the world: 53

43.8% of GDP (2009 est.)

 

Inflation rate (consumer prices):

1.7% (2010 est.)

country comparison to the world: 56

1.6% (2009 est.)

 

Central bank discount rate:

1.75% (31 December 2010)

country comparison to the world: 117

1.75% (31 December 2009)

note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

 

Commercial bank prime lending rate:

2.267% (31 December 2010 est.)

country comparison to the world: 184

2.552% (31 December 2009 est.)

 

Stock of narrow money:

$113 billion (31 December 2010 est.)

country comparison to the world: 29

$113.6 billion (31 December 2009 est.)

note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders

 

Stock of broad money:

$172.9 billion (31 December 2010 est.)

country comparison to the world: 41

$173.4 billion (31 December 2009 est.)

 

Stock of domestic credit:

$242.6 billion (31 December 2010 est.)

country comparison to the world: 37

$242.2 billion (31 December 2009 est.)

 

Market value of publicly traded shares:

$118.2 billion (31 December 2010)

country comparison to the world: 43

$91.02 billion (31 December 2009)

$154.4 billion (31 December 2008)

 

Agriculture - products:

barley, wheat, sugar beets, potatoes; dairy cattle; fish

 

Industries:

metals and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing

 

Industrial production growth rate:

5.1% (2010 est.)

country comparison to the world: 80

 

Electricity - production:

67.94 billion kWh (2009 est.)

country comparison to the world: 39

 

Electricity - consumption:

83.09 billion kWh (2008 est.)

country comparison to the world: 35

 

Electricity - exports:

3.375 billion kWh (2009 est.)

 

Electricity - imports:

12.09 billion kWh (2009 est.)

 

Oil - production:

8,718 bbl/day (2010 est.)

country comparison to the world: 88

 

Oil - consumption:

217,400 bbl/day (2010 est.)

country comparison to the world: 54

 

Oil - exports:

133,600 bbl/day (2009 est.)

country comparison to the world: 60

 

Oil - imports:

318,100 bbl/day (2009 est.)

country comparison to the world: 33

 

Oil - proved reserves:

0 bbl (1 January 2011 est.)

country comparison to the world: 130

 

Natural gas - production:

0 cu m (2010 est.)

country comparison to the world: 181

 

Natural gas - consumption:

4.782 billion cu m (2010 est.)

country comparison to the world: 62

 

Natural gas - exports:

0 cu m (2010 est.)

country comparison to the world: 95

 

Natural gas - imports:

4.782 billion cu m (2010 est.)

country comparison to the world: 34

 

Natural gas - proved reserves:

0 cu m (1 January 2011 est.)

country comparison to the world: 135

 

Current account balance:

$7.561 billion (2010 est.)

country comparison to the world: 27

$5.892 billion (2009)

 

Exports:

$69.4 billion (2010 est.)

country comparison to the world: 43

$62.91 billion (2009 est.)

 

Exports - commodities:

electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber

 

Exports - partners:

Sweden 11.6%, Germany 10.2%, Russia 8.5%, US 7%, Netherlands 6.9%, China 5%, UK 4.9% (2010)

 

Imports:

$65 billion (2010 est.)

country comparison to the world: 40

$58.12 billion (2009 est.)

 

Imports - commodities:

foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, grains

 

Imports - partners:

Russia 17.4%, Germany 14.7%, Sweden 14.5%, Netherlands 8.2%, China 4.4% (2010)

 

Reserves of foreign exchange and gold:

$9.555 billion (31 December 2010 est.)

country comparison to the world: 73

$11.46 billion (31 December 2009 est.)

 

Debt - external:

$518 billion (30 June 2011)

country comparison to the world: 24

$370.8 billion (30 June 2010)

 

Stock of direct foreign investment - at home:

$82.71 billion (31 December 2010 est.)

country comparison to the world: 39

$84.44 billion (31 December 2009 est.)

 

Stock of direct foreign investment - abroad:

$130.6 billion (31 December 2010 est.)

country comparison to the world: 23

$126.8 billion (31 December 2009 est.)

 

Exchange rates:

euros (EUR) per US dollar -

0.755 (2010)

0.7198 (2009)

0.6827 (2008)

0.7345 (2007)

0.7964 (2006)