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Finland Economy Profile 2017

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Economy - overviewFinland 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 - principally 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 2012-14. The recession affected general government finances and the debt ratio. The economy returned to growth in 2015, posting a 0.3% GDP increase before growing 1.4% in 2016.

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. 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.
GDP (purchasing power parity)$225.7 billion (2016 est.)
$222.6 billion (2015 est.)
$221.9 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$239.2 billion (2016 est.)
GDP - real growth rate1.4% (2016 est.)
0.3% (2015 est.)
-0.5% (2014 est.)
GDP - per capita (PPP)$40,600 (2015 est.)
$40,700 (2014 est.)
$41,000 (2013 est.)
note: data are in 2016 dollars
Gross national saving20% of GDP (2016 est.)
19.5% of GDP (2015 est.)
19.9% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 55.1%
government consumption: 24.2%
investment in fixed capital: 20.2%
investment in inventories: -0.1%
exports of goods and services: 35.4%
imports of goods and services: -34.8% (2016 est.)
GDP - composition by sectoragriculture: 2.5%
industry: 26.9%
services: 70.6% (2016 est.)
Population below poverty lineNA%
Labor force2.675 million (2016 est.)
Labor force - by occupationagriculture and forestry: 4.5%
industry: 24%
construction: 71.5%
commerce: 21.3%
finance, insurance, and business services: 13.3%
transport and communications: 9.9%
public services: 28.5% (2011)
Unemployment rate8.8% (2016 est.)
9.4% (2015 est.)
Unemployment, youth ages 15-24total: 20.5%
male: 22.8%
female: 18.4% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 4.2%
highest 10%: 21.5% (2015)
Distribution of family income - Gini index21.5 (2015)
26.8 (2008)
Budgetrevenues: $128.5 billion
expenditures: $132.7 billion
note: Central Government Budget (2016 est.)
Taxes and other revenues53.7% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-1.8% of GDP (2016 est.)
Public debt63.6% of GDP (2016 est.)
63.7% of GDP (2015 est.)
note: data cover general government debt, and includes 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 intra-governmental debt; intra-governmental 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
Inflation rate (consumer prices)0.4% (2016 est.)
-0.2% (2015 est.)
Central bank discount rate0.25% (31 December 2016)
0.3% (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
Commercial bank prime lending rate1.46% (31 December 2016 est.)
2% (31 December 2015 est.)
Stock of narrow money$130.2 billion (31 December 2016 est.)
$123.7 billion (31 December 2015 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
Stock of broad money$177.3 billion (31 December 2016 est.)
$174.1 billion (31 December 2015 est.)
Stock of domestic credit$355.3 billion (31 December 2016 est.)
$357.9 billion (31 December 2015 est.)
Market value of publicly traded shares$133.7 billion (31 December 2016 est.)
$NA (31 December 2015 est.)
$154.4 billion (31 December 2014 est.)
Agriculture - productsbarley, wheat, sugar beets, potatoes; dairy cattle; fish
Industriesmetals and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing
Industrial production growth rate0.8% (2016 est.)
Current Account Balance-$2.511 billion (2016 est.)
-$968 million (2015 est.)
Exports$59.6 billion (2016 est.)
$57.45 billion (2015 est.)
Exports - commoditieselectrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber
Exports - partnersGermany 13.9%, Sweden 10.1%, US 7%, Netherlands 6.6%, Russia 5.9%, UK 5.2%, China 4.7% (2015)
Imports$60.51 billion (2016 est.)
$60.46 billion (2015 est.)
Imports - commoditiesfoodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, computers, electronic industry products, textile yarn and fabrics, grains
Imports - partnersGermany 17%, Sweden 16.1%, Russia 10.9%, Netherlands 9%, Denmark 4.1% (2015)
Reserves of foreign exchange and gold$10.6 billion (31 December 2016 est.)
$10 billion (31 December 2015 est.)
Debt - external$544.7 billion (31 March 2016 est.)
$524.7 billion (31 March 2015 est.)
Stock of direct foreign investment - at home$153.5 billion (31 December 2016 est.)
$135.9 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$140.6 billion (31 December 2016 est.)
$141.1 billion (31 December 2015 est.)
Exchange rateseuros (EUR) per US dollar -
0.9214 (2016 est.)
0.885 (2015 est.)
0.885 (2014 est.)
0.7634 (2013 est.)
0.78 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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