Finland Economy Profile 2009

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; Finland's ratio of exports to GDP has risen from a quarter to 37% over the past 15 years. 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. Although Finland has been one of the best performing economies within the EU in recent years and its banks and financial markets have avoided the worst of global financial crisis, the world slowdown has hit export growth and domestic demand and will serve as a brake on economic growth in 2009 and 2010. The slowdown of construction, other investment, and exports will cause unemployment to rise. During 2009, unemployment will climb to over 8% of the labor force. Long-term challenges include the need to address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.

GDP (purchasing power parity)

$193.5 billion (2008 est.)
$191.8 billion (2007 est.)
$184.1 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$274 billion (2008 est.)

GDP - real growth rate

0.9% (2008 est.)
4.2% (2007 est.)
4.9% (2006 est.)

GDP - per capita (PPP)

$36,900 (2008 est.)
$36,600 (2007 est.)
$35,200 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2.8%
industry: 32.4%
services: 64.9% (2008 est.)

Population below poverty line

NA%

Labor force

2.703 million (2008 est.)

Labor force - by occupation

agriculture and forestry 4.5%, industry 18.3%, construction 7.3%, commerce 16%, finance, insurance, and business services 14.5%, transport and communications 7%, public services 32.4% (2008)

Unemployment rate

6.4% (2008 est.)
6.9% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.6%
highest 10%: 24.7% (2007)

Distribution of family income - Gini index

29.5 (2007)
25.6 (1991)

Investment (gross fixed)

20.6% of GDP (2008 est.)

Budget

revenues: $143.8 billion
expenditures: $132.3 billion (2008 est.)

Public debt

33.4% of GDP (2008 est.)
46.8% of GDP (2004 est.)

Inflation rate (consumer prices)

4.1% (2008 est.)
2.5% (2007 est.)

Central bank discount rate

3% (31 December 2008)
5% (31 December 2007)
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

5.04% (December 2008)

Stock of money

$NA (31December 2008)
$NA (31 December 2007)
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 quasi money

$NA (31 December 2008)
$NA (31 December 2007)

Stock of domestic credit

$227 billion (31 December 2008)
$225.4 billion (31 December 2007)

Industries

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

Industrial production growth rate

0.4% (2008 est.)

Electricity - production

74.1 billion kWh (2008)

Electricity - production by source

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

Electricity - consumption

86.9 billion kWh (2008)

Electricity - exports

3.2 billion kWh (2008)

Electricity - imports

16 billion kWh (2008)

Oil - production

8,951 bbl/day (2007 est.)

Oil - consumption

217,500 bbl/day (2008)

Oil - imports

331,200 bbl/day (2007)

Oil - exports

124,300 bbl/day (2007)

Oil - proved reserves

NA bbl

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

2.268 billion cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

4.576 billion cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006)

Current Account Balance

$5.518 billion (2008 est.)
$10.12 billion (2007 est.)

Agriculture - products

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

Exports

$96.62 billion (2008 est.)
$90.2 billion (2007 est.)

Exports - commodities

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

Exports - partners

Russia 11.6%, Sweden 10%, Germany 10%, US 6.4%, UK 5.5%, Netherlands 5.1% (2008)

Imports

$87.51 billion (2008 est.)
$78.22 billion (2007 est.)

Imports - commodities

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

Imports - partners

Russia 16.3%, Germany 15.7%, Sweden 13.6%, Netherlands 6.3%, China 5.1%, UK 4.2% (2008)

Reserves of foreign exchange and gold

$8.346 billion (31 December 2008 est.)
$8.385 billion (31 December 2007 est.)

Debt - external

$332.2 billion (31 December 2008)
$314.1 billion (31 December 2007)

Stock of direct foreign investment - at home

$84.44 billion (31 December 2008 est.)
$88.69 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$115.8 billion (31 December 2008 est.)
$114.2 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$369.2 billion (31 December 2007)
$265.5 billion (31 December 2006)

Economic aid - donor

ODA, $1.023 billion (2007)

Currency (code)

EUR

Currency (code)

euro (EUR)

Exchange rates

euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year

calendar year