Finland: country overview

Finland has a highly industrialized, largely free-market economy with per capita output roughly that of the Austria, Belgium, the Netherlands, and Sweden. Trade is important with exports accounting for over one third of GDP in recent years.

Year of EU entry: 1995

Member of Schengen area: Yes

Political system: Republic

Capital city: Helsinki

Total area: 338 000 km²

Population: 5.3 million

Currency: euro

Listen to the official EU languages: Finnish , Swedish

Country overview

Finland, a country of forests and lakes, is perhaps best known for its unspoilt natural beauty. In the far north, the White Nights, during which the sun does not set, last for around 10 weeks of the summer. In winter the same area goes through nearly eight weeks when the sun never rises above the horizon.

As a result of Finland being a part of Sweden for seven centuries (from the 12th century until 1809) some 6% of the population is Swedish-speaking. Finland became an independent state following the Russian revolution in 1917. Since this date Finland has been a republic. It has a one-chamber parliament whose 200 members are elected every four years.

The country has developed a modern, competitive economy, and is a world leader in telecommunications equipment. Main exports include telecoms equipment and engineering products, paper, pulp and lumber, glassware, stainless steel and ceramics.

Economy overview

Finland is strongly competitive in manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in high-tech exports such as mobile phones. 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. Finland had been one of the best performing economies within the EU in recent years and its banks and financial markets avoided the worst of global financial crisis. However, the world slowdown hit exports and domestic demand hard in 2009, with Finland experiencing one of the deepest contractions in the euro zone. A recovery of exports, domestic trade, and household consumption stimulated economic growth in 2010. The recession left a deep mark on general government finances and the debt ratio, turning previously strong budget surpluses into deficits. In addition to marginal growth prospects, general government finances will remain in deficit during the next few years. The great challenge of economic policy will be to mitigate a possible recession in 2012 in which measures supporting growth will be combined with general government adjustment measures. Longer-term, Finland must address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.

Useful links

The Commission's Representation in Finland

European Parliament office in Finland

Finnish Government

Tourist information

Source: Your Europe