Finland Economy 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 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):
$210.5 billion (2007 est.)

GDP - real growth rate:
3.9% (2007 est.)

GDP - per capita (PPP):
$35,500 (2007 est.)

GDP - composition by sector:
agriculture: 2.5%
industry: 31.7%
services: 65.9% (2007 est.)

Labor force:
2.68 million (2007 est.)

Labor force - by occupation:
agriculture and forestry 4.4%, industry 17.5%, construction 6%, commerce 22%, finance, insurance, and business services 12%, transport and communications 8%, public services 30.2% (2000 est.)

Unemployment rate:
6.6% (2007 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: 4%
highest 10%: 22.6% (2000)

Distribution of family income - Gini index:
26 (2005)

Inflation rate (consumer prices):
2.7% (2007 est.)

Investment (gross fixed):
19.4% of GDP (2007 est.)

Budget:
revenues: $124.2 billion
expenditures: $114 billion (2007 est.)

Public debt:
32.9% of GDP (2007 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:
2.5% (2007 est.)

Electricity - production:
67.09 billion kWh (2005)

Electricity - consumption:
81.11 billion kWh (2005)

Electricity - exports:
933 million kWh (2005)

Electricity - imports:
17.92 billion kWh (2005)

Oil - production:
8,951 bbl/day (2005 est.)

Oil - consumption:
219,700 bbl/day (2005 est.)

Oil - exports:
118,300 bbl/day (2004)

Oil - imports:
333,400 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
4.244 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
4.245 billion cu m (2005)

natural gas - proved reserves:
0 cu m (1 January 2006)

Current account balance:
$17.12 billion (2007 est.)

Exports:
$92.62 billion f.o.b. (2007 est.)

Exports - commodities:
machinery and equipment, chemicals, metals; timber, paper, pulp (1999)

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

Imports:
$76.36 billion f.o.b. (2007 est.)

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

Economic aid - donor:
ODA, $850.5 million (2005)

Reserves of foreign exchange and gold:
$7.499 billion (2006 est.)

Debt - external:
$271.2 billion (30 June 2007)

Stock of direct foreign investment - at home:
$64.18 billion (2006 est.)

Stock of direct foreign investment - abroad:
$90.83 billion (2006 est.)

Market value of publicly traded shares:
$209.5 billion (2005)

Currency (code):
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

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