Finland i/fnlnd/ ( Finnish: Suomi; Swedish: Finland (helpinfo)), officially the Republic of Finland,[5] is a Nordic country situated in the

Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland. Around 5.4 million people reside in Finland, with the majority concentrated in the southern region.[6] It is the eighth largest country in Europe in terms of area and the most sparsely populated country in the European Union. Finland is a parliamentary republic with a central government based in Helsinki and local governments in 336 municipalities.[7] Finland is inhabited by the Finnish people, and 92% of the inhabitants speak the Finnish language. Recent history In 2002 Finland introduced the single European currency, the euro. Like other Nordic countries, Finland has liberalized its economy since the late 1980s. Financial and product market regulation was loosened. Some state enterprises have been privatized and there have been some modest tax cuts. Finland joined the European Union in 1995, and the Eurozone in 1999. The population is aging with the birth rate at 10.42 births per 1,000 population, or a fertility rate of 1.8.[31] With a median age of 41.6 years, Finland is one of the oldest countries;[32][dead link] half of voters are estimated to be over 50 years old. Like most European countries, without further reforms or much higher immigration, Finland is expected to struggle with demographics, even though macroeconomic projections are healthier than in most other developed countries. The Finnish markka was replaced by the euro in 2002. As a preparation for this date, the minting of the new euro coins started as early as 1999; this is why the first euro coins from Finland have the year 1999 on them, instead of 2002 like some of the other countries of the Eurozone. Three different designs (one for 2 coin, one for 1 coin and one for the other six coins) were selected for the Finnish coins. In 2007, in order to adopt the new common map like the rest of the Eurozone countries, Finland changed the common side of their coins. Geography Finland is a country of thousands of lakes and islands 187,888 lakes (larger than 500 m2/0.12 acre) and 179,584 islands.[33] Its largest lake, Saimaa, is the fourth largest in Europe. The Finnish landscape is mostly flat with few hills and fewer mountains. Its highest point, the Halti at 1,324 metres (4,344 ft), is found in the extreme north of Lapland at the border between Finland and Norway. The highest mountain, its peak being in Finland, is Ridnitsohkka at 1,316 m (4,318 ft), directly adjacent to Halti. Finland lies between latitudes 59 and 71 N, and longitudes 20 and 32 E.

Forest covers 86% of the country's area,[34] the largest forested area in Europe. The forest consists of pine, spruce, birch, larch and other species. Finland is the largest producer of wood in Europe and among the largest in the world. Climate The Finnish climate is suitable for grain farming in the southernmost regions but not further north.[39] Finland has a humid and cool semi continental climate, characterized by warm summers and freezing winters. Administrative divisions The fundamental administrative divisions of the country are the municipalities, which may also call themselves towns or cities. They account for half of public spending. Spending is financed by municipal income tax, state subsidies, and other revenue. There are 336 municipalities,[7][8] and most have fewer than 6,000 residents. People often identify with their municipality. Politics Eduskuntatalo, the main building of the Parliament of Finland (Eduskunta) in Helsinki. The Constitution of Finland defines the political system. Finland is a representative democracy that was formerly a semi-presidential parliamentary system, but now is a largely ceremonial nonexecutive Presidency. Aside from state-level politics, residents use their vote in municipal elections and in the European Union elections. According to the Constitution, the President of Finland is the head of state and responsible for foreign policy (which excludes affairs related to the European Union) in cooperation with the cabinet. Other powers include Commander-in-Chief, decree, and appointive powers. Direct vote is used to elect the president for a term of six years and maximum two consecutive terms. Finland's Financial Markets The main function of the financial markets is to facilitate the flow of finance from economic operators in surplus to those in deficit. Within the various sectors of the economy, both households and businesses are either net lenders or net borrowers. The financial markets can be roughly divided into direct finance (the securities market) and indirect finance, which is characterized by the important intermediary role of various types of financial institution.

Division of responsibilities for the financial markets between the various authorities

The Ministry of Finance is responsible for banking and securities market legislation and related national and international cooperation. The Ministry's policy on the financial markets seeks to develop the markets and ensure their stability and efficiency, balanced competition, and the diversity and accessibility of financial services. The Ministry also makes an important contribution to the work of international financial institutions and organizations.

The Bank of Finland is responsible within the European System of Central Banks for monetary policy and executing monetary policy decisions as well as to contribute to the stability of payment and financial systems.

The Financial Supervision Authority supervises the banks, other credit institutions and the securities markets. The Ministry of Social Affairs and Health is responsible for legislation relating to the insurance market, while supervision of insurance and pension institutions is the task of the Insurance Supervision Authority.

The changing operating environment on the financial markets puts a premium on cooperation between the various authorities charged with responsibility for market-related issues. There is continuous cooperation and exchange of information in respect of both market stability and legislation.

International cooperation In stability and legislative issues, the Ministry of Finance's most important international cooperation network is formed by the various EU committees and working groups. The financial market supervisory authorities and central banks (ESCB) also have their own international cooperation networks within the EU, but in addition to this they work closely with the Commission and ministries on EU development projects.

Financial markets operators Banks (credit institutions) or investment firms with a licence to operate in a Member State of the European Union are entitled to offer their services throughout the EU.

Organizations such as Federation of Finnish Financial Services, the Finnish Association of Securities Dealers and the Finnish Association of Mutual Funds, which represent financial markets operators, contribute to legislative development by, for example, commenting on development projects or participating in legislative working groups. Present economic scenario QUICK FACTS Population:

5.4 million

GDP (PPP):

$179.6 billion -7.8% growth 0.6% 5-year compound annual growth $33,556 per capita

Unemployment:

8.2%

Inflation (CPI):

1.6%

FDI Inflow: $2.6 billion Finlands economic freedom score is 74, making its economy the 17th freest in the 2011 Index. Its score is 0.2 point better than last year, with improvements in monetary and investment freedom undermined by a growth in government spending. Finland is ranked 8th out of 43 countries in the Europe region, and its overall score is well above the world average. The strong competitiveness of Finlands economy is built on flexibility and openness. The economy is a world leader in several of the 10 economic freedoms, including business freedom, property rights, and freedom from corruption. The regulatory environment encourages entrepreneurial activity and innovation. Commercial operations are handled with transparency and speed, and corruption is perceived as almost nonexistent. As in many other European social democracies, however, high government spending continues to support an extensive welfare state. In addition, restrictive labor regulations undermine employment and productivity growth.

Background

Though culturally and economically inclined toward the West, Finland struggled during much of the postWorld War II period to manage its relationship with the Soviet Union. Finland became a member of NATOs Partnership for Peace program in 1994 but has not pursued full NATO membership because of its neutral military status. Finland joined the European Union in 1995 and adopted the euro as its currency in 1999. It is sparsely populated, with about one-fourth of its land mass above the Arctic Circle, but boasts a modern and competitive economy with vibrant information and communications technology sectors. Previously robust economic growth slowed in 2009, and Finland was hit particularly hard by the global recession as demand for its mainly capital goodsintensive exports collapsed. Finland, like many other European nations, faces demographic challenges in the form of an aging population and shrinking workforce, which threaten future growth and the ability to maintain generous social spending programs.

Business Freedom95.0 no change A modern regulatory environment strongly facilitates business formation, dynamism, and competition. The efficient business framework is conducive to innovation and productivity growth. VisualizeView Methodology

Trade Freedom87.6 +0.1 Finlands trade policy is the same as that of other members of the European Union. The common EU weighted average tariff rate was 1.2 percent in 2009. However, the EU has high or escalating tariffs for agricultural and manufacturing products, and its MFN tariff code is complex. Nontariff barriers reflected in EU and Finnish policy include agricultural and manufacturing subsidies, quotas, import restrictions and bans for some goods and services, market access restrictions in some services sectors, non-transparent and restrictive regulations and standards, and inconsistent regulatory and customs administration among EU members. Ten points were deducted from Finlands trade freedom score to account for non-tariff barriers. VisualizeView Methodology

Fiscal Freedom65.3 -0.1 Finland has moderate tax rates but a relatively high level of overall taxation. The top income tax rate is 30.5 percent, with municipal rates between 16.5 percent and 20 percent and a church tax between 1 percent and 2 percent. The top corporate tax rate is 26 percent. Other taxes include a value-added tax (VAT) raised in July 2010, an inheritance tax, and a flat 28 percent tax on capital income. In the most recent year, overall tax revenue as a percentage of GDP was 43.2 percent. VisualizeView Methodology

Government Spending26.5 -6.4 Total government expenditures, including consumption and transfer payments, are high. Finlands discretionary stimulus package was one of the regions highest. In the most recent year, government spending increased to 49.5 percent of GDP, driving the fiscal deficit to nearly 4 percent of GDP. State ownership of productive assets is considerable. VisualizeView Methodology

Monetary Freedom80.7 +1.8 Finland uses the euro as its currency. Between 2007 and 2009, Finlands weighted average annual rate of inflation was 2.2 percent. As a participant in the EUs Common Agricultural Policy, the government subsidizes agricultural production, distorting the prices of agricultural products. It also imposes artificially low prices on pharmaceutical products. Ten points were deducted from Finlands monetary freedom score to account for measures that distort domestic prices. VisualizeView Methodology

Investment Freedom85.0 +10.0 Finland is open to foreign direct investment. Foreign acquisitions of large companies may require follow-up clearance from the government. Regulation is relatively transparent and efficient. There are no exchange controls and no restrictions on current transfers or repatriation of profits, and residents and non-residents may hold foreign exchange accounts. Property may not be expropriated without compensation. Restrictions on the purchase of land apply only to non-residents purchasing land in the Aaland Islands. VisualizeView Methodology

Financial Freedom80.0 no change Finlands sophisticated financial system provides a wide range of services, guided by sound regulations and prudent lending practices. Mergers and acquisitions have made banking more international and competitive. Efficiency and capital adequacy remain sound. There are more than 300 domestic banks, but three bank groups (Nordea, OP Pohjola Group, and the Sampo Group) dominate the system. The government retains an ownership share in the Sampo Group. Banking is open to foreign competition, and about 60 percent of assets are foreign-owned. Capital markets determine interest rates, and credit is available to nationals and foreigners. The stock exchange is part of a BalticNordic exchange network. Merger of the Financial

Supervision Authority and Insurance Supervisory Authority came into force in January 2009. The impact of the global financial turmoil has been relatively mild.

Present financial scenario GDP (Constant Prices, National Currency) for Finland in year 2010 is EUR 157.998 Billion. Real GDP is expressed in billions of national currency units; the base year is country-specific. GDP Growth (Constant Prices, National Currency) for Finland in year 2010 is 3.122 %. Annual percentages of constant price GDP are year-on-year changes; the base year is country-specific. GDP (Current Prices, National Currency) for Finland in year 2010 is EUR 180.295 Billion. GDP is expressed in billions of national currency units. GDP (Current Prices, US Dollars) for Finland in year 2010 is US$ 239.232 Billion. Values are based upon GDP in national currency and the exchange rate projections provided by country economists for the group of other emerging market and developing countries. Exchanges rates for advanced economies are established in the WEO assumptions. GDP Deflator for Finland in year 2010 is 114.112 (Index, Base Year as per country's accounts = 100). The GDP deflator is derived by dividing current price GDP by constant price GDP and is considered to be an alternate measure of inflation. Please note: Data are expressed in the base year of each country's national accounts. GDP Per Capita (Constant Prices, National Currency) for Finland in year 2010 is EUR 29,381.97 . GDP is expressed in constant national currency per person. Data are derived by dividing constant price GDP by total population. GDP Per Capita (Current Prices, National Currency) for Finland in year 2010 is EUR 33,528.41 . GDP is expressed in current national currency per person. Data are derived by dividing current price GDP by total population. GDP Per Capita (Current Prices, US Dollars) for Finland in year 2010 is US$ 44,488.64 . GDP is expressed in current U.S. dollars per person. Data are derived by first converting GDP in national currency to U.S. dollars and then dividing it by total population. Output Gap, Percent of Potential GDP for Finland in year 2010 is -4.254 %. Output gaps for advanced economies are calculated as actual GDP less potential GDP as a percent of potential GDP. Estimates of output gaps are subject to a significant margin of uncertainty. GDP (PPP), US Dollars for Finland in year 2010 is US$ 185.979 Billion. Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP. These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. Please note: The IMF is not a primary source for purchasing power parity

(PPP) data. WEO weights have been created from primary sources and are used solely for purposes of generating country group composites. GDP Per Capita (PPP), US Dollars for Finland in year 2010 is US$ 34,585.45 . Gross domestic product based on purchasing-power-parity (PPP) per capita GDP. These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. Please note: The IMF is not a primary source for purchasing power parity (PPP) data. WEO weights have been created from primary sources and are used solely for purposes of generating country group composites. GDP Share of World Total (PPP) for Finland in year 2010 is 0.25 %. Gross domestic product based on purchasing-power-parity (PPP) share of world total. These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. Please note: The IMF is not a primary source for purchasing power parity (PPP) data. WEO weights have been created from primary sources and are used solely for purposes of generating country group composites. Implied PPP Conversion Rate for Finland in year 2010 is 0.969 . These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. Please note: The IMF is not a primary source for purchasing power parity (PPP) data. WEO weights have been created from primary sources and are used solely for purposes of generating country group composites. Investment (% of GDP) for Finland in year 2010 is 19.018 %. Data are based on individual countries' national accounts statistics. For many countries, the estimates of national saving are built up from national accounts data on gross domestic investment and from balance of payments-based data on net foreign investment. Gross National Savings (% of GDP) for Finland in year 2010 is 21.857 %. Data are based on individual countries' national accounts statistics. For many countries, the estimates of national saving are built up from national accounts data on gross domestic investment and from balance of payments-based data on net foreign investment. Inflation, Average Consumer Prices (Indexed to Year 2000) for Finland in year 2010 is 110.488 (Index, Base Year 2000 = 100). Data for inflation are averages for the year, not end-of-period data. The index is based on 2000=100. Inflation (Average Consumer Price Change %) for Finland in year 2010 is 1.686 %. Data for inflation are averages for the year, not end-of-period data. Inflation, End of Year (Indexed to Year 2000) for Finland in year 2010 is 112.07 (Index, Base Year 2000 = 100). Data for inflation are end of the period, not annual average data. The index is based on 2000=100. Inflation (End of Year Change %) for Finland in year 2010 is 2.769 %. Data for inflation are end of the period, not annual average data.

Import Volume of All Items Including Goods and Services (Percent Change) for Finland in year 2010 is 2.608 %. Import Volumes of Goods Only (Percent Change) for Finland in year 2010 is 9.844 %. Export Volume of All Items Including Goods and Services (Percent Change) for Finland in year 2010 is 5.062 %. Export Volumes of Goods Only (Percent Change) for Finland in year 2010 is 10.019 %. Value of Oil Imports for Finland in year 2010 is US$ 9.274 Billions. Value is equal to the price per unit of quantity of oil imports multiplied by the number of quantity units. Value of Oil Exports for Finland in year 2010 is US$ 5.145 Billions. Value is equal to the price per unit of quantity of oil exports multiplied by the number of quantity units. Unemployment Rate (% of Labour Force) for Finland in year 2010 is 8.383 %. Employment for Finland in year 2010 is 2.447 Million . Population for Finland in year 2010 is 5.377 Million . General government revenue (National Currency) for Finland in year 2010 is EUR 94.355 Billions. Revenue consists of taxes, social contributions, grants receivable, and other revenue. Revenue increases government?s net worth, which is the difference between its assets and liabilities (GFSM 2001, paragraph 4.20). Note: Transactions that merely change the composition of the balance sheet do not change the net worth position, for example, proceeds from sales of nonfinancial and financial assets or incurrence of liabilities. General government revenue (% of GDP) for Finland in year 2010 is 52.334 %. Revenue consists of taxes, social contributions, grants receivable, and other revenue. Revenue increases government?s net worth, which is the difference between its assets and liabilities (GFSM 2001, paragraph 4.20). Note: Transactions that merely change the composition of the balance sheet do not change the net worth position, for example, proceeds from sales of nonfinancial and financial assets or incurrence of liabilities. General government total expenditure (National Currency) for Finland in year 2010 is EUR 99.338 Billions. Total expenditure consists of total expense and the net acquisition of nonfinancial assets. Note: Apart from being on an accrual basis, total expenditure differs from the GFSM 1986 definition of total expenditure in the sense that it also takes the disposals of nonfinancial assets into account. General government total expenditure (% of GDP) for Finland in year 2010 is 55.097 %. Total expenditure consists of total expense and the net acquisition of nonfinancial assets. Note: Apart from being on an accrual basis, total expenditure differs from the GFSM 1986 definition of total expenditure in the sense that it also takes the disposals of nonfinancial assets into account.

Total Government Net Lending/ Borrowing (National Currency) for Finland in year 2010 is EUR -4.983 Billions. Net lending (+)/ borrowing (?) is calculated as revenue minus total expenditure. This is a core GFS balance that measures the extent to which general government is either putting financial resources at the disposal of other sectors in the economy and nonresidents (net lending), or utilizing the financial resources generated by other sectors and nonresidents (net borrowing). This balance may be viewed as an indicator of the financial impact of general government activity on the rest of the economy and nonresidents (GFSM 2001, paragraph 4.17). Note: Net lending (+)/borrowing (?) is also equal to net acquisition of financial assets minus net incurrence of liabilities. Total Government Net Lending/ Borrowing (% of GDP) for Finland in year 2010 is -2.764 %. General Government Structural Balance (National Currency) for Finland in year 2010 is EUR 0.36 Billion. Data are on a national income accounts basis. The structural budget position is defined as the actual budget deficit (or surplus) less the effects of cyclical deviations of output from potential output. Because of the margin of uncertainty that attaches to estimates of cyclical gaps and to tax and expenditure elasticities with respect to national income, indicators of structural budget positions should be interpreted as broad orders of magnitude. General Government Structural Balance (% Potential GDP) for Finland in year 2010 is 0.191 %. Data are on a national income accounts basis. The structural budget position is defined as the actual budget deficit (or surplus) less the effects of cyclical deviations of output from potential output. Because of the margin of uncertainty that attaches to estimates of cyclical gaps and to tax and expenditure elasticities with respect to national income, indicators of structural budget positions should be interpreted as broad orders of magnitude. General Government Balance (National Currency) for Finland in year 2010 is EUR -5.719 Billion. Primary net lending/borrowing is net lending (+)/borrowing (?) plus net interest payable/paid (interest expense minus interest revenue). General Government Balance (% of GDP) for Finland in year 2010 is -3.172 %. Primary net lending/borrowing is net lending (+)/borrowing (?) plus net interest payable/paid (interest expense minus interest revenue). Total Government Net Debt (National Currency) for Finland in year 2010 is EUR -102.403 Billion. Net debt is calculated as gross debt minus financial assets corresponding to debt instruments. These financial assets are: monetary gold and SDRs, currency and deposits, debt securities, loans, insurance, pension, and standardized guarantee schemes, and other accounts receivable.receivable. Total Government Net Debt (% of GDP) for Finland in year 2010 is -56.797 %. Net debt is calculated as gross debt minus financial assets corresponding to debt instruments. These financial assets are: monetary gold and SDRs, currency and deposits, debt securities, loans, insurance, pension, and standardized guarantee schemes, and other accounts receivable.

Total Government Gross Debt (National Currency) for Finland in year 2010 is EUR 87.216 Billion. Gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future. This includes debt liabilities in the form of SDRs, currency and deposits, debt securities, loans, insurance, pensions and standardized guarantee schemes, and other accounts payable. Thus, all liabilities in the GFSM 2001 system are debt, except for equity and investment fund shares and financial derivatives and employee stock options. Debt can be valued at current market, nominal, or face values (GFSM 2001, paragraph 7.110). Total Government Gross Debt (% of GDP) for Finland in year 2010 is 48.374 %. Gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future. This includes debt liabilities in the form of SDRs, currency and deposits, debt securities, loans, insurance, pensions and standardized guarantee schemes, and other accounts payable. Thus, all liabilities in the GFSM 2001 system are debt, except for equity and investment fund shares and financial derivatives and employee stock options. Debt can be valued at current market, nominal, or face values (GFSM 2001, paragraph 7.110). Fiscal Year Gross Domestic Product, Current Prices for Finland in year 2010 is EUR 180.295 Billions. Gross domestic product corresponding to fiscal year is the country's GDP based on the same period during the year as their fiscal data. In the case of countries whose fiscal data are based on a fiscal calendar (e.g., July to June), this series would be the country's GDP over that same period. For countries whose fiscal data are based on a calendar year (i.e., January to December), this series will be the same as their GDP in current prices. Current Account Balance (US Dollars) for Finland in year 2010 is US$ 7.478 Billion. Current account is all transactions other than those in financial and capital items. The major classifications are goods and services, income and current transfers. The focus of the BOP is on transactions (between an economy and the rest of the world) in goods, services, and income. Current Account Balance (% GDP) for Finland in year 2010 is 3.126 %. Current account is all transactions other than those in financial and capital items. The major classifications are goods and services, income and current transfers. The focus of the BOP is on transactions (between an economy and the rest of the world) in goods, services, and income. Current Account Balance (US Dollars) Statistics for Finland , Year 2010 - In Detail

Current Account Balance (US Dollars) for Finland in year 2010 is US$ 7.478 Billion This makes Finland No. 28 in world rankings according to Current Account Balance (US Dollars) in year 2010. The world's average Current Account Balance (US Dollars) value is US$ 6.76 Billion; Finland is US$ 0.72 more than the average.

In the previous year, 2009, Current Account Balance (US Dollars) for Finland was US$ 5.60 Billion Current Account Balance (US Dollars) for Finland in 2010 was or will be 33.49% more than it was or will be in 2009. In the following or forecasted year, 2011, Current Account Balance (US Dollars) for Finland was or will be US$7.19 Billion, which is 3.88% less than the 2010 figure.