Finland: Economy#
Finland has a highly industrialized, largely free-market economy with per capita GDP almost as high as that of Austria, Belgium, the Netherlands, or Sweden. Trade is important, with exports accounting for over one-third of GDP in recent years.Finland is historically competitive in manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in export of technology for mobile phones 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.
Finland's main challenges will be reducing high labor costs and boosting demand for its exports. 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. The depreciating ruble and Russia’s general economic slowdown will dampen exports to Russia.
Economic Facts#
| GDP (purchasing power parity) | $230 billion (2016 est.) $227.9 billion (2015 est.) $227.4 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $239.2 billion (2015 est.) |
| GDP - real growth rate | 0.9% (2016 est.) 0.2% (2015 est.) -0.7% (2014 est.) |
| GDP - per capita (PPP) | $41,800 (2016 est.) $41,600 (2015 est.) $41,700 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 21.5% of GDP (2016 est.) 20.9% of GDP (2015 est.) 19.9% of GDP (2014 est.) |
| GDP - composition, by end use | household 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 sector of origin | agriculture: 2.5% industry: 26.9% services: 70.6% (2016 est.) |
| 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 | 0.8% (2016 est.) |
| Labor force | 2.675 million (2016 est.) |
| Labor force - by occupation | agriculture and forestry: 4.4% industry: 15.5% construction: 7.1% commerce: 21.3% finance, insurance, and business services: 13.3% transport and communications: 9.9% public services: 28.5% (2011) |
| Unemployment rate | 9.1% (2016 est.) 9.3% (2015 est.) |
| Population below poverty line | NA% |
| 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) |
| Budget | revenues: $127.6 billion expenditures: $132.7 billion note: Central Government Budget (2016 est.) |
| Taxes and other revenues | 53.4% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -2.1% of GDP (2016 est.) |
| Public debt | 64.9% of GDP (2016 est.) 62.5% of GDP (2015 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 int |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 0.4% (2016 est.) -0.2% (2015 est.) |
| Central bank discount rate | 0.05% (31 December 2013) 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 rate | 1.8% (31 December 2016 est.) 2% (31 December 2015 est.) |
| Stock of narrow money | $130.1 billion (31 December 2016 est.) $121.4 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 |
| Stock of broad money | $179.8 billion (31 December 2014 est.) $195.3 billion (31 December 2013 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 | $158.7 billion (31 December 2012 est.) $143.1 billion (31 December 2011 est.) $118.2 billion (31 December 2010 est.) |
| Current account balance | $199 million (2016 est.) $316 million (2015 est.) |
| Exports | $57.1 billion (2016 est.) $61.29 billion (2015 est.) |
| Exports - commodities | electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber |
| Exports - partners | Germany 13.9%, Sweden 10.1%, US 7%, Netherlands 6.6%, Russia 5.9%, UK 5.2%, China 4.7% (2015) |
| Imports | $53.5 billion (2016 est.) $58.5 billion (2015 est.) |
| Imports - commodities | foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, computers, electronic industry products, textile yarn and fabrics, grains |
| Imports - partners | Germany 17%, Sweden 16%, Russia 11%, Netherlands 9.1%, Denmark 4.1% (2015) |
| Reserves of foreign exchange and gold | $10.5 billion (31 December 2016 est.) $10.02 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 rates | euros (EUR) per US dollar - 0.9214 (2016 est.) 0.885 (2015 est.) 0.885 (2014 est.) 0.7634 (2013 est.) 0.78 (2012 est.) |