|
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, with exports equaling more than one-third 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 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. Rapidly increasing integration with Western Europe - Finland was one of the 11 countries joining the euro monetary system (EMU) on 1 January 1999 - will dominate the economic picture over the next several years. Growth in 2000 will probably be at the same level as in 1999, enough to continue the decline in unemployment from its current high level. GDP: |
|
Finland has a highly industrialized, largely free-market economy, based on abundant forest resources, capital investments, and technology. Traditionally, Finland has been a net importer of capital to finance industrial growth. In the 1980s, Finland's economic growth rate was one of the highest of industrialized countries, with per capita output roughly that of the United Kingdom, France, Germany, and Italy. Finland's key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important, with exports equaling more than one-third 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. In 1991, Finland fell into a deep recession caused by economic overheating, depressed foreign markets, and the dismantling of the barter system between Finland and the former Soviet Union. The same year, Finland devalued the markka to promote export competitiveness. This helped stabilize the economy; the recession bottomed out in 1993, with continued growth through 1995. Unemployment continues to be a problem for Finland, and in late 1996 it was around 19%. Exports of goods contribute more than 20% of Finland's GDP; combined exports of goods and services amount to at least 25% of GDP. Exports and imports of goods equal about 40% of GDP. Timber and metalworking are Finland's main industries, but other industries produce manufactured goods ranging from electronics to motor vehicles. Finnish-designed consumer products such as textiles, porcelain, and glassware are world-famous. Except for timber and several minerals, Finland depends on imported raw materials, energy, and some components for its manufactured products. Farms tend to be small, but sizable timber stands are harvested for supplementary income in winter. The country's main agricultural products are dairy, meat, and grains. Finland's EU accession has accelerated the process of restructuring and downsizing of this sector. An extensive social welfare system, constituting about one-fifth of the national income, includes a variety of pension and assistance programs and a comprehensive health insurance program. Although free education through the university level also is available, only about one child in four receives a higher education in the highly competitive system. In the mid-1970s, the educational system was reformed with the goal of equalizing educational opportunities. Beginning at age seven, all Finnish children are required to attend a "basic school" of nine grade levels. After this, they may elect to continue along an academic (lukio) or vocational (ammat-tikoulu) line. But most pursue vocational studies, since the number of openings in higher educational institutions is less than the demand. Finland generally welcomes foreign investment. Areas of particular interest for investors are specialized high-tech companies and investments that take advantage of Finland's position as a gateway to Russia and the Baltic countries. Finland is experiencing rapidly increasing integration with Western Europe: Finland was one of the 11 countries joining the euro monetary system (EMU) on 1 January 1999. GDP: |
![[Home]](wikipedia.png)