
Finland Economy
Finland Economy: A summary of information about Finland Economy, from government research data as well as independent research and other sources.
Finland: Economy
Economy - overview
Finland has a highly industrialized, largely free-market economy, with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important, with exports equaling more than one-third of GDP. 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. The economy has come back from the recession of 1990-92, which had been caused by economic overheating, depressed foreign markets, and the dismantling of the barter system between Finland and the former Soviet Union. Rapidly increasing integration with Western Europe - Finland was one of the 11 countries joining the euro monetary system (EMU) on 1 January 1999 - will dominate the economic picture over the next several years. Growth in 2000 will probably be at the same level as in 1999, enough to continue the decline in unemployment from its current high level.
GDP
purchasing power parity - $108.6 billion (1999 est.)
GDP - real growth rate
3.5% (1999 est.)
GDP - per capita
purchasing power parity - $21,000 (1999 est.)
GDP - composition by sector
agriculture: 5% industry: 32% services: 63% (1997)
Population below poverty line
NA%
Household income or consumption by percentage share
lowest 10%: 4.2% highest 10%: 21.6% (1991)
Inflation rate (consumer prices)
1% (1999 est.)
Labor force
2.533 million
Labor force - by occupation
public services 32%, industry 22%, commerce 14%, finance, insurance, and business services 10%, agriculture and forestry 8%, transport and communications 8%, construction 6%
Unemployment rate
10% (1999 est.)
Budget
revenues: $41 billion expenditures: $41 billion, including capital expenditures of $NA (1997 est.)
Industries
metal products, shipbuilding, pulp and paper, copper refining, foodstuffs, chemicals, textiles, clothing
Industrial production growth rate
4.8% (1999)
Electricity - production
75.299 billion kWh (1998)
Electricity - production by source
fossil fuel: 41.62% hydro: 19.59% nuclear: 27.59% other: 11.2% (1998)
Electricity - consumption
79.278 billion kWh (1998)
Electricity - exports
300 million kWh (1998)
Electricity - imports
9.55 billion kWh (1998)
Agriculture - products
cereals, sugar beets, potatoes; dairy cattle; fish
Exports
$43 billion (f.o.b., 1998)
Exports - commodities
machinery and equipment, chemicals, metals; timber, paper, and pulp
Exports - partners
EU 56% (Germany 12%, UK 9%, Sweden 9%, France 5%), US 7%, Russia 6%, Japan (1998)
Imports
$30.7 billion (f.o.b., 1998)
Imports - commodities
foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, fodder grains
Imports - partners
EU 60% (Germany 15%, Sweden 12%, UK 7%), US 8%, Russia 7%, Japan 6% (1998)
Debt - external
$30 billion (December 1993)
Economic aid - donor
ODA, $379 million (1997)
Currency
1 markka (FMk) or Finmark = 100 pennia
Exchange rates
euros per US$1 - 0.9867 (January 2000), 0.9386 (1999); markkaa (FMk) per US$1 - 5.3441 (1998), 5.1914 (1997), 4.5936 (1996), 4.3667 (1995) note: on 1 January 1999, the EU introduced a common currency that is now being used by financial institutions in some member countries at a fixed rate of 5.94573 markkaa per euro; the euro will replace the local currency in consenting countries for all transactions in 2002
Fiscal year
calendar year