Finland Economy

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.)
$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.)
-8.2% (2009 est.)
0.9% (2008 est.)

GDP - per capita (PPP)

$35,400 (2010 est.)
$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.)

Population below poverty line

NA%

Labor force

2.672 million (2010 est.)

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.)
8.2% (2009 est.)

Unemployment, youth ages 15-24

total: 20.5%
male: 22%
female: 18.8% (2009)

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)
25.6 (1991)

Investment (gross fixed)

18.8% of GDP (2010 est.)

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.)

Budget surplus (+) or deficit (-)

-2.8% of GDP (2010 est.)

Public debt

48.4% of GDP (2010 est.)
43.8% of GDP (2009 est.)

Inflation rate (consumer prices)

1.7% (2010 est.)
1.6% (2009 est.)

Central bank discount rate

1.75% (31 December 2010)
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.)
2.552% (31 December 2009 est.)

Stock of money

$NA
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders

Stock of narrow money

$113 billion (31 December 2010 est.)
$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.)
$173.4 billion (31 December 2009 est.)

Stock of quasi money

$NA

Stock of domestic credit

$242.6 billion (31 December 2010 est.)
$242.2 billion (31 December 2009 est.)

Market value of publicly traded shares

$118.2 billion (31 December 2010)
$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.)

Electricity - production

67.94 billion kWh (2009 est.)

Electricity - production by source

fossil fuel: 39%
hydro: 18.7%
nuclear: 30.4%
other: 11.8% (2001)

Electricity - consumption

83.09 billion kWh (2008 est.)

Electricity - exports

3.375 billion kWh (2009 est.)

Electricity - imports

12.09 billion kWh (2009 est.)

Oil - production

8,718 bbl/day (2010 est.)

Oil - consumption

217,400 bbl/day (2010 est.)

Oil - exports

133,600 bbl/day (2009 est.)

Oil - imports

318,100 bbl/day (2009 est.)

Oil - proved reserves

0 bbl (1 January 2011 est.)

Natural gas - production

0 cu m (2010 est.)

Natural gas - consumption

4.782 billion cu m (2010 est.)

Natural gas - exports

0 cu m (2010 est.)

Natural gas - imports

4.782 billion cu m (2010 est.)

Natural gas - proved reserves

0 cu m (1 January 2011 est.)

Current Account Balance

$7.561 billion (2010 est.)
$5.892 billion (2009)

Exports

$69.4 billion (2010 est.)
$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.)
$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.)
$11.46 billion (31 December 2009 est.)

Debt - external

$518 billion (30 June 2011)
$370.8 billion (30 June 2010)

Stock of direct foreign investment - at home

$82.71 billion (31 December 2010 est.)
$84.44 billion (31 December 2009 est.)

Stock of direct foreign investment - abroad

$130.6 billion (31 December 2010 est.)
$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)