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 !
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