Finnish Economy
Financial
Management
Rita Kattilakoski,
Ma4n0207
INTRODUCTION
HISTORY
AGENDA
ECONOMY
Current Situation
International Trade
Future
 Republic of Finland – located in Northern Europe
 Population 5.5 million
 Majority live in the southern regions
 8th largest country in Europe in terms of land area
 Most sparsely polulated country within the EU
INTRODUCTION
 Åland Island – an autonomous region
 Capital city: Helsinki (1.4 million people live in the Helsinki
area)
 Official languages: Finnish (89%), Swedish (6%)
 Sami people in the North of Finland (0.03%)
 Currency: Euro
1. Prior to 1809 – Part of Sweden
2. Russia took over from 1809-1917
HISTORY
 Highest governing body was the Senate – members were
Finns
 Senate communicated with Russian Emperor – Russian
authorities were unable to interfere
 Finnish became the official language
3. Independent country from 1917 to the
present day (98 years)
 Final peace treaty with Russia in 1947
ECONOMY
 In the 1950s Finnish economy based on primary
production and agrarian workforce – one of the
poorest countries in Europe
 Quite fast Finland developed and is now relatively
rich and economically stable country in
international comparison
 Largest sectors: services 65% , manufacturing and
refining 31%
 Main industrial products: paper and board,
electronics and metal products
 Leading branches of manufacturing: engineering
and high technology industries
 Resources: mineral (iron, chromium, copper and
gold)and freshwater
GDP: 204 bn € (2014)
GDP per capita: at current market prices 49,055€ (2014)
Monthly wages: average 3,206€; men 3,530€, women 2,891€
(2013)
ECONOMY
Unemployment rate: 8.7% (2014)
Inflation rate: -0.34 % (2015)
 Member of EU since 1995 and Eurozone 2002
 State Debt: 60%/ Deficit: 3.2%  Warning from European
Comission
Europe: GDP per capita
INTERNATIONAL
TRADE
EU makes up 60% of the total trade
Largest trade flows with:
 Germany, Russia, UK, USA, Netherlands, Sweden
and China
Trade policy regulated by EU
Trade accounts one-third of the GDP
INTERNATIONAL
TRADE
INTERNATIONAL
TRADE
 The economy is slowly coming out of a long recession
 Economic activity is broadly flat in 2015  But projected to
strengthen in 2016
 Export growth remains slow  Global demand for capital
goods has weakened and exports to Russia have decreased
FUTURE
 Domestic demand low  Rising unemployment, low income
growth, consumer´s weak confidence
 The budget deficit has risen above 3% of GDP for the first
time since the mid-1990s
 Government tries to reduces spending
 However structural reforms are essential to revive growth, ensure
long-term fiscal sustainability and generate resources to support
well-being
Thank
you !