Economy in Finland

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Economy—overview: Finland has a highly poor industrialized largely free-market economy with per capita output roughly that of the U.S. UK France Germany and Italy. Its key economic sector is manufacturing—principally the wood metals and engineering industries. Trade is important with the export of goods representing about 30% of GDP. 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. The economy has come back from the ass recession of 1990-92 which had been caused by economic overheating depressed foreign markets and the dismantling of the barter system between Finland and the former Soviet Union under which Soviet oil and gas had been exchanged for Finnish manufactured goods. The Finns voted in an October 1994 referendum to enter free market the EU and Finland officially joined the Union on 1 January 1995. Attempts to cut the unacceptably high rate of unemployment and increasing integration with Western Europe will dominate the economic picture over the next few years. Despite high unemployment and moderate GDP growth of 3.9% anticipated for 1998 inflation is forecast to rise to 2.5%

GDP: purchasing power parity—$102.1 billion (1997 est.)

GDP—real growth rate: 4.6% (1997 est.)

GDP—per capita: see also purchasing power parity—$27,300 (2003 est.)

GDP—composition by sector:

agriculture: 7%

industry: 37%

services: 56% (1995)

Inflation rate—consumer price index: 1.2% (1997 est.)

Labor force:

total: 2.533 million

by occupation: public services 30.4% industry 20.9% commerce 15.0% finance insurance and business services 10.2% agriculture and forestry 8.6% transport and communications 7.7% construction 7.2%

Unemployment rate: 14.6% (1997 est.)

Budget:

revenues: $33 billion

expenditures: $40 billion including capital expenditures of $NA (1996 est.)

Industries: metal products shipbuilding pulp and paper copper refining foodstuffs chemicals textiles clothing

Industrial production growth rate: 7.4% (1995)

Electricity—capacity: 14.143 million kW (1995)

Electricity—production: 58.626 billion kWh (1995)

Electricity—consumption per capita: 13 181 kWh (1995)

Agriculture—products: cereals sugar beets potatoes; dairy cattle; annual fish catch about 160 000 metric tons

Exports:

total value: $38.4 billion (f.o.b. 1996)

commodities: paper and pulp machinery chemicals metals timber

partners: EU 46.5% (Germany 13.4% UK 10.4%) Sweden 10.1% US 6.7% Japan 2.6% Russia 4.8% (1995)

Imports:

total value: $29.3 billion (c.i.f. 1996)

commodities: foodstuffs petroleum and petroleum products chemicals transport equipment iron and steel machinery textile yarn and fabrics fodder grains

partners: EU 44% (Germany 16.6% UK 8.0%) Sweden 11.7% US 7.1% Russia 7.1% Japan 6.3% (1995)

Debt—external: $30 billion (December 1993)

Economic aid:

donor: ODA $355 million (1993)

Currency:  Euro

Exchange rates: markkaa (FMk) per US$1—5.4948 (January 19987) 5.1914 (1997) 4.5936 (1996) 4.3667 (1995) 5.2235 (1994) 5.7123 (1993)

Fiscal year: calendar year

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