Finland Economy

FINLAND

Finland Economy – overview:

Finland has a highly industrialized, largely free-market economy with per capita GDP almost as high as that of Austria and the Netherlands and slightly above that of Germany and Belgium. Trade is important, with exports accounting for over one-third of GDP in recent years. The government is open to, and actively takes steps to attract, foreign direct investment.

Finland is historically competitive in manufacturing, particularly in the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in export of technology as well as promotion of startups in the information and communications technology, gaming, cleantech, and biotechnology sectors. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the cold climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export industry, provides a secondary occupation for the rural population.

Finland had been one of the best performing economies within the EU before 2009 and its banks and financial markets avoided the worst of global financial crisis. However, the world slowdown hit exports and domestic demand hard in that year, causing Finland’s economy to contract from 2012 to 2014. The recession affected general government finances and the debt ratio. The economy returned to growth in 2016, posting a 1.9% GDP increase before growing an estimated 3.3% in 2017, supported by a strong increase in investment, private consumption, and net exports. Finnish economists expect GDP to grow a rate of 2-3% in the next few years.

Finland’s main challenges will be reducing high labor costs and boosting demand for its exports. In June 2016, the government enacted a Competitiveness Pact aimed at reducing labor costs, increasing hours worked, and introducing more flexibility into the wage bargaining system. As a result, wage growth was nearly flat in 2017. The Government was also seeking to reform the health care system and social services. In the long term, Finland must address a rapidly aging population and decreasing productivity in traditional industries that threaten competitiveness, fiscal sustainability, and economic growth.

Finland GDP (purchasing power parity):

$244.9 billion (2017 est.)

$238.2 billion (2016 est.)

$232.4 billion (2015 est.)

note: data are in 2017 dollars

country comparison to the world: 62

Finland GDP (official exchange rate):

$252.8 billion (2017 est.)

Finland GDP – real growth rate:

2.8% (2017 est.)

2.5% (2016 est.)

0.1% (2015 est.)

country comparison to the world: 122

Finland GDP – per capita (PPP):

$44,500 (2017 est.)

$43,400 (2016 est.)

$42,500 (2015 est.)

note: data are in 2017 dollars

country comparison to the world: 38

Finland Gross national saving:

23.3% of GDP (2017 est.)

21.7% of GDP (2016 est.)

20% of GDP (2015 est.)

country comparison to the world: 73

Finland GDP – composition, by end use:

household consumption: 54.4% (2017 est.)

government consumption: 22.9% (2017 est.)

investment in fixed capital: 22.1% (2017 est.)

investment in inventories: 0.4% (2017 est.)

exports of goods and services: 38.5% (2017 est.)

imports of goods and services: -38.2% (2017 est.)

Finland GDP – composition, by sector of origin:

agriculture: 2.7% (2017 est.)

industry: 28.2% (2017 est.)

services: 69.1% (2017 est.)

Finland Agriculture – products:

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

Finland Industries:

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

Finland Industrial production growth rate:

6.2% (2017 est.)

country comparison to the world: 39

Labor force: This entry contains the total labor force figure. Labor force field listing

2.473 million (2017 est.)

country comparison to the world: 115

Finland Labor force – by occupation:

agriculture: 4%

industry: 20.7%

services: 75.3% (2017 est.)

Finland Unemployment rate:

8.5% (2017 est.)

8.8% (2016 est.)

country comparison to the world: 121

Finland Household income or consumption by percentage share:

lowest 10%: 6.7%

highest 10%: 45.2% (2013)

Finland Distribution of family income – Gini index:

27.2 (2016)

22.2 (1995)

country comparison to the world: 144

Finland Budget:

revenues: 134.2 billion (2017 est.)

expenditures: 135.6 billion (2017 est.)

note: Central Government Budget data; these numbers represent a significant reduction from previous official reporting

Finland Taxes and other revenues:

53.1% (of GDP) (2017 est.)

country comparison to the world: 11

Finland Budget surplus (+) or deficit (-):

-0.6% (of GDP) (2017 est.)

country comparison to the world: 64

Finland Public debt:

61.3% of GDP (2017 est.)

62.9% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions

country comparison to the world: 72

Finland Fiscal year:

calendar year

Finland Inflation rate (consumer prices):

0.8% (2017 est.)

0.4% (2016 est.)

country comparison to the world: 41

Finland Central bank discount rate:

1.25% (31 December 2017)

0% (31 December 2010)

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

country comparison to the world: 131

Finland Commercial bank prime lending rate:

1.61% (31 December 2017 est.)

1.79% (31 December 2016 est.)

country comparison to the world: 188

Finland Stock of narrow money:

$152.6 billion (31 December 2017 est.)

$124 billion (31 December 2016 est.)

note: see entry for the European Union for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 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

country comparison to the world: 28

Finland Stock of broad money:

$152.6 billion (31 December 2017 est.)

$124 billion (31 December 2016 est.)

country comparison to the world: 28

Finland Stock of domestic credit:

$323.9 billion (31 December 2017 est.)

$351.6 billion (31 December 2016 est.)

country comparison to the world: 34

Finland Market value of publicly traded shares:

$231 billion (31 December 2016 est.)

$207.5 billion (31 December 2015 est.)

$208.7 billion (31 December 2014 est.)

country comparison to the world: 32

Finland Current account balance:

$1.806 billion (2017 est.)

-$819 million (2016 est.)

country comparison to the world: 42

Finland Exports:

$67.73 billion (2017 est.)

$51.9 billion (2016 est.)

country comparison to the world: 43

Finland Exports – partners:

Germany 14.2%, Sweden 10.1%, US 7%, Netherlands 6.8%, China 5.7%, Russia 5.7%, UK 4.5% (2017)

Finland Exports – commodities:

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

Finland Imports:

$65.26 billion (2017 est.)

$58.18 billion (2016 est.)

country comparison to the world: 47

Finland Imports – commodities:

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

Finland Imports – partners:

Germany 17.7%, Sweden 15.8%, Russia 13.1%, Netherlands 8.7% (2017)

Finland Reserves of foreign exchange and gold:

$10.51 billion (31 December 2017 est.)

$11.2 billion (31 December 2016 est.)

country comparison to the world: 73

Finland Debt – external:

$150.6 billion (31 December 2016 est.)

$147.8 billion (31 December 2015 est.)

country comparison to the world: 42

Finland Stock of direct foreign investment – at home:

$135.2 billion (31 December 2017 est.)

$84.8 billion (31 December 2016 est.)

country comparison to the world: 40

Finland Stock of direct foreign investment – abroad:

$185.6 billion (31 December 2017 est.)

$116.7 billion (2016 est.)

country comparison to the world: 29

Finland Exchange rates:

euros (EUR) per US dollar –

0.885 (2017 est.)

0.903 (2016 est.)

0.9214 (2015 est.)

0.885 (2014 est.)

0.7634 (2013 est.)


Data for Educational Purpose Only.

Source: 

The World Factbook 2016-17. Washington, DC: Central Intelligence Agency, 2016.

https://www.cia.gov/library/publications/the-world-factbook/index.html


Other Pages Relating to Country Finland:

Finland at a Glance and One Page Summary

Finland Background and Introduction

Finland Geography

Finland People and Society

Finland Government

Finland Economy

Finland Energy Resources

Finland Communications System

Finland Transportation System

Finland Military and Security System

Finland Transnational Issues

Finland Capital Flag and Currency

Go to All Country Index


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