. Index
. 1996 Index
. Flag
. Geography
. People
. Government
. Economy
. Transportation
. Commun'tions
. Defense
. Geo Names
. Feedback
===========
|
Finland Economy 1996
Finland has a highly industrialized, largely free market economy, with per
capita output two-thirds of the US figure. 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, which
experienced an average of 4.9% annual growth between 1987 and 1989, sank
into deep recession in 1991 as GDP contracted by 6.5%. The recession - which
continued in 1992 with GDP contracting by 4.1% - has 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 Finnish
Government has proposed efforts to increase industrial competitiveness and
efficiency by an increase in exports to Western markets, cuts in public
expenditures, partial privatization of state enterprises, and changes in
monetary policy. In June 1991 Helsinki had tied the markka to the European
Union's (EU) European Currency Unit (ECU) to promote stability. Ongoing
speculation resulting from a lack of confidence in the government's policies
forced Helsinki to devalue the markka by about 12% in November 1991 and to
indefinitely break the link in September 1992. The devaluations have boosted
the competitiveness of Finnish exports. The recession bottomed out in 1993,
and Finland participated in the general European upturn of 1994.
Unemployment probably will remain a serious problem during the next few
years; the majority of Finnish firms face a weak domestic market and the
troubled German and Swedish export markets. The Finns voted in an October
1994 referendum to enter the EU, and Finland officially joined the Union on
1 January 1995. Increasing integration with Western Europe will dominate the
economic picture over the next few years.
GDP - purchasing power parity - $81.8 billion (1994 est.)
-
National product real growth rate:
-
National product per capita:
-
Inflation rate (consumer prices):
$31.7 billion, including capital expenditures of $NA (1993 est.)
$23.4 billion (f.o.b., 1993)
paper and pulp, machinery, chemicals, metals, timber
EC 53.2% (Germany 15.6%, UK 10.7%), EFTA 19.5% (Sweden 12.8%), US 5.9%,
Japan 1.3%, Russia 2.8% (1992)
$18 billion (c.i.f., 1993)
foodstuffs, petroleum and petroleum products, chemicals, transport
equipment, iron and steel, machinery, textile yarn and fabrics, fodder
grains
EC 47.2% (Germany 16.9%, UK 8.7%), EFTA 19.0% (Sweden 11.7%), US 6.1%, Japan
5.5%, Russia 7.1% (1992)
$30 billion (December 1993)
growth rate 5% (1993 est.); accounts for 28% of GDP
metal products, shipbuilding, forestry and wood processing (pulp, paper),
copper refining, foodstuffs, chemicals, textiles, clothing
accounts for 7% of GDP (including forestry); livestock production,
especially dairy cattle, predominates; main crops - cereals, sugar beets,
potatoes; 85% self-sufficient, but short of foodgrains and fodder grains;
annual fish catch about 160,000 metric tons
transshipment point for Latin American cocaine for the West European market
ODA and OOF commitments (1970-89), $2.7 billion
1 markka (FMk) or Finmark = 100 pennia
markkaa (FMk) per US$1 - 4.7358 (January 1995), 5.2235 (1994), 5.7123
(1993), 4.4794 (1992), 4.0440 (1991), 3.8235 (1990)
|
|
