Finland Economy Profile 2008

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; exports equal nearly two-fifths of GDP. Finland excels in high-tech exports, e.g., 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. High unemployment remains a persistent problem. In 2007 Russia announced plans to impose high tariffs on raw timber exported to Finland. The Finnish pulp and paper industry will be threatened if these duties are put into place in 2008 and 2009, and the matter is now being handled by the European Union.

GDP (purchasing power parity)

$185.9 billion (2007 est.)

GDP (official exchange rate)

$244.9 billion (2007)

GDP - real growth rate

4.4% (2007)

GDP - per capita (PPP)

$35,500 (2007 est.)

GDP - composition by sector

agriculture: 2.6%
industry: 32.3%
services: 65.1% (2007 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 4%
highest 10%: 22.6% (2000)

Inflation rate (consumer prices)

2.7% (2007 est.)

Investment (gross fixed)

19.4% of GDP (2007 est.)

Labor force

2.68 million (2007 est.)

Labor force - by occupation

agriculture and forestry 4.4%, industry 18.6%, construction 6%, commerce 16.3%, finance, insurance, and business services 13.9%, transport and communications 7.6%, public services 33.2% (2004)

Unemployment rate

6.9% (2007)

Distribution of family income - Gini index

26 (2005)

Budget

revenues: $62.02 billion
expenditures: $58.16 billion (2007)

Public debt

31.3% of GDP (2007)

Industries

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

Industrial production growth rate

4.6% (2007)

Electricity - production

73.47 billion kWh (2007 est.)

Electricity - consumption

88.27 billion kWh (2007 est.)

Electricity - exports

1.059 billion kWh (2007 est.)

Electricity - imports

15.85 billion kWh (2007 est.)

Oil - production

8,951 bbl/day (2005 est.)

Oil - consumption

219,700 bbl/day (2005 est.)

Oil - imports

281,300 bbl/day (January-September 2007 est.)

Oil - exports

126,300 bbl/day (January-September 2007 est.)

Oil - proved reserves

NA bbl

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

3.909 billion cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

4.123 billion cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006)

Current Account Balance

$11.24 billion (2007)

Agriculture - products

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

Exports

$104.9 billion f.o.b. (2007)

Exports - commodities

machinery and equipment, chemicals, metals; timber, paper, pulp

Exports - partners

Germany 11.3%, Sweden 10.5%, Russia 10.1%, UK 6.5%, US 6.5%, Netherlands 5.1% (2006)

Imports

$81.54 billion f.o.b. (2007)

Imports - commodities

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

Imports - partners

Germany 15.6%, Russia 14%, Sweden 13.7%, Netherlands 6.6%, China 5.4%, UK 4.7%, Denmark 4.5% (2006)

Reserves of foreign exchange and gold

$7.804 billion (2007)

Debt - external

$271.2 billion (30 June 2007)

Stock of direct foreign investment - at home

$66.25 billion (2006)

Stock of direct foreign investment - abroad

$74.81 billion (2006)

Market value of publicly traded shares

$1.095 trillion (January 2008)

Economic aid - donor

ODA, $1.023 billion (2007)

Currency (code)

euro (EUR)

Exchange rates

euros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)

Fiscal year

calendar year