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Economy of Finland

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Finland has a highly industrialized mixed economy with a per capita output equal to that of other European economies such as France, Germany, Belgium or the UK. The largest sector of the economy is services at 66%, followed by manufacturing and refining at 31%.

Primary production is 2.9%.[69] With respect to foreign trade, the key economic sector is manufacturing. The largest industries[70] are electronics (22%), machinery, vehicles and other engineered metal products (21.1%), forest industry (13%) and chemicals (11%).

Finland has timber and several mineral and freshwater resources. Forestry, paper factories, and the agricultural sector (on which taxpayers spend around 3 billion euros annually) are politically sensitive to rural residents. The Greater Helsinki area generates around a third of GDP. In a 2004 OECD comparison, high-technology manufacturing in Finland ranked second largest after Ireland. Knowledge-intensive services have also ranked the smallest and slow-growth sectors – especially agriculture and low-technology manufacturing – second largest after Ireland.[71] Overall short-term outlook was good and GDP growth has been above many EU peers.

Finland's real-terms GDP growth, 1998–2011.
Finland is highly integrated in the global economy, and international trade is a third of GDP. The European Union makes 60% of the total trade.[citation needed] The largest trade flows are with Germany, Russia, Sweden, United Kingdom, United States, Netherlands and China. Trade policy is managed by the European Union, where Finland has traditionally been among the free trade supporters, except for agriculture. Finland is the only Nordic country to have joined the Eurozone.

Finland's climate and soils make growing crops a particular challenge. The country lies between latitudes 60°N and 70°N, and has severe winters and relatively short growing seasons that are sometimes interrupted by frosts. However, because the Gulf Stream and the North Atlantic Drift Current moderate the climate, Finland contains half of the world's arable land north of 60° north latitude. Annual precipitation is usually sufficient, but it occurs almost exclusively during the winter months, making summer droughts a constant threat. In response to the climate, farmers have relied on quick-ripening and frost-resistant varieties of crops, and they have cultivated south-facing slopes as well as richer bottomlands to ensure production even in years with summer frosts. Most farmland had originally been either forest or swamp, and the soil had usually required treatment with lime and years of cultivation to neutralize excess acid and to develop fertility. Irrigation was generally not necessary, but drainage systems were often needed to remove excess water. Finland's agriculture was efficient and productive—at least when compared with farming in other European countries.[64]

Aleksanterinkatu, a commercial street in Helsinki.
Forests play a key role in the country's economy, making it one of the world's leading wood producers and providing raw materials at competitive prices for the crucial wood-processing industries. As in agriculture, the government has long played a leading role in forestry, regulating tree cutting, sponsoring technical improvements, and establishing long-term plans to ensure that the country's forests continue to supply the wood-processing industries. To maintain the country's comparative advantage in forest products, Finnish authorities moved to raise lumber output toward the country's ecological limits. In 1984 the government published the Forest 2000 plan, drawn up by the Ministry of Agriculture and Forestry. The plan aimed at increasing forest harvests by about 3% per year, while conserving forestland for recreation and other uses.[64]

Private sector employees amount to 1.8 million, out of which around a third with tertiary education. The average cost of a private sector employee per hour was 25.1 euros in 2004.[72] As of 2008 average purchasing power-adjusted income levels are similar to those of Italy, Sweden, Germany and France.[73] In 2006, 62% of the workforce worked for enterprises with less than 250 employees and they accounted for 49% of total business turnover and had the strongest rate of growth.[74] The female employment rate is high. Gender segregation between male-dominated professions and female-dominated professions is higher than in the US.[75] The proportion of part-time workers was one of the lowest in OECD in 1999.[75]

Graphical depiction of Finland's product exports in 28 colour-coded categories.
The employment rate was 68% and the unemployment rate was 6.8% in early 2008.[76] 18% of residents are outside the job market at the age of 50 and less than a third are working at the age of 61.[77] Unfunded pensions and other promises such as health insurances are a dominant future liability, though Finland is much better prepared than countries such as France or Germany.[78] Directly held public debt has been reduced to around 32% of GDP in 2007.[79] In 2007, the average household savings rate was −3.8 and household debt 101% of annual disposable income, a typical level in Europe.[80] Home ownership rate is 60%.

As of 2006, 2.4 million households reside in Finland. The average size is 2.1 persons; 40% of households consist of a single person, 32% two persons and 28% three or more persons. Residential buildings total 1.2 million and the average residential space is 38 m2 per person. The average residential property without land costs 1,187 euro per sq metre and residential land 8.6 euro per sq metre. 74% of households had a car.

Economy of Finland. With respect to foreign trade, the key economic sector is manufacturing.

Economy of Finland

The largest industries[14] are electronics (21.6 percent), machinery, vehicles and other engineered metal products (21.1 percent), forest industry (13.1 percent), and chemicals (10.9 percent). Finland has timber and several mineral and freshwater resources. Forestry, paper factories, and the agricultural sector (on which taxpayers spend around 2 billion euro annually) are politically sensitive to rural residents. The Greater Helsinki area generates around a third of GDP. List of companies of Finland. Helsinki Stock Exchange. The Helsinki Stock Exchange (Finnish: Helsingin Pörssi, Swedish: Helsingforsbörsen) is a stock exchange located in Helsinki, Finland.

Helsinki Stock Exchange

Since 3 September 2003 it has been part of OMX, referred to as OMX Helsinki (OMXH). Since NASDAQ's acquisition of OMX in February 2008, the official name of the Helsinki exchange has been NASDAQ OMX Helsinki. History[edit] File:Tree map exports 2009 Finland.jpeg. Energy. Nuclear power in Finland. Nuclear power plants in Finland (view) Active plants Planned plants As of 2008, Finland's nuclear power program has four nuclear reactors in two power plants, all located on the shores of the Baltic Sea.

Nuclear power in Finland

Nordic energy market. Nordic electricity market is a common market for electricity in the Nordic countries.

Nordic energy market

It is one of the first free electric-energy markets in Europe and is traded in NASDAQ OMX Commodities Europe and Nord Pool Spot. In 2003, the largest market shares were as follows: Vattenfall 17%, Fortum 14.1%, Statkraft 8.9%, E.on 7.5%, Elsam 5%, Pohjolan Voima 5%. Other producers had 42.5% market share. Denmark[edit] From 1999 and onwards, Denmark is a net exporter of fossil energy.[1] Transport in Finland. The transport system of Finland is well-developed.

Transport in Finland

The extensive road system is utilized by most internal cargo and passenger traffic. As of 2010[update], the country's network of main roads has a total length of around 78,162 kilometres (48,568 mi) and all public roads 104,161 kilometres (64,723 mi). The motorway network totals 779 kilometres (484 mi) with additional 124 kilometres (77 mi) reserved only for motor traffic.[1]:23, 42 Road network expenditure of around 1 billion euro is paid with vehicle and fuel taxes that amount to around 1.5 billion euro and 1 billion euro. The main international passenger gateway is Helsinki-Vantaa Airport with over 13 million passengers in 2007. About 25 airports have scheduled passenger services. Transport. Finnish models of public transport. As of 2009[update] Finland has used three models for the provision of local public transport.

Finnish models of public transport

The implementation of these models was regulated by the national laws of passenger transport, which were abolished after the EU regulations and laws of public transport service (869/2009) came into effect 3.12.2009. The Finnish government-owned railways are regulated by specific laws. Industry. Nordic model. This article is about the social and economic model in northern Europe.

Nordic model

For the socioeconomic model in continental Europe and Germany in particular, see Rhenish model. For the political ideology often associated with the Nordic model, see Social democracy. The Nordic model (or Nordic capitalism[1] or Nordic social democracy)[2][3] refers to the economic and social models of the Nordic countries (Denmark, Finland, Norway, Iceland, Greenland, Faroe Islands and Sweden), which involves the combination of a free market economy with a welfare state.[4] Although there are significant differences among the Nordic countries, they all share some common traits.

These include support for a "universalist" welfare state (relative to other developed countries) which is aimed specifically at enhancing individual autonomy, promoting social mobility and ensuring the universal provision of basic human rights, as well as for stabilizing the economy, alongside a commitment to free trade. Overview[edit] Business. Tourism in Finland. 2008-built fast cruiseferry MS Viking XPRS approaching Helsinki.

Tourism in Finland

Cruises are a popular tourist activity throughout Finland. Finland attracted over 6,1 million tourists in 2010, with most coming from Russia.[1] The value added by tourism is about 2.4% of the Finnish GDP, and provides around 60,000 jobs. The Finnish tourism brand is stated by the Finland Promotion Board. The brand has four main dimensions beginning with letter C: Cool, Contrasts, Credible, Creative. Tourism.