Special Focus: Finnish Economy

"Finland's ratio of exports to GDP has risen from a quarter to 37% over the past 15 years. The main product that the country is exporting is mobile phones."

Finland is a highly industrialized country with a free-market economy, which per capita output is roughly the same with that of the UK, France, Germany, and Italy. The main economic sectors in which the country is activated are wood, metals and engineering, telecommunications, and electronic industries. Furthermore trade is important for the economy of the country. Finland's ratio of exports to GDP has risen from a quarter to 37% over the past 15 years. The main product that the country is exporting is mobile phones.

Although, at least in the beginning of the global economic crisis, Finland avoided the worst of it, the world slowdown has hit export growth and domestic demand and will serve as a brake on economic growth in 2010. This is largely highlighted by the fact that the volume of Finland’s GDP grew was 1% in 2008. Gross domestic product, amounted to EUR 185 billion in 2009. The aforementioned result is positive if we take into account the fact that the GDP of the European Union member-states shrunk during 2008. On the other hand is negative if we take into consideration that the growth of GDP in Finland was 4,2% in 2007. The fall of GDP continued through the first quarter of 2009. In the 3rd quarter of 2009 GDP was further diminished and the economy has remained at approximately the level of year 2006. The volume of GDP in the second quarter of 2009 was at -0.3% from the previous quarter and at -9.1% a year ago. 

Except from GDP another important economical factor is unemployment. According to the Employment Service Statistics, at the end of October the number of unemployed jobseekers registered at Employment and Economic Development Offices totaled 269,600, up 77,000 on the previous year. Compared with September, the number of unemployed job applicants increased by 3,800. In October, 31, 400 of the unemployed were individually laid-off, which is 1,400 more than in September. The energy policy of the country is based on two fundamental principles; sustainability and predictability. This is illustrated by the fact that during the past few years, Finland has been one of the leading industrialized countries that use renewable energy and especially bioenergy. Additionally, the Finish authorities are trying to secure energy supply, a competitive price of energy and to keep the arising environmental emissions within the international commitments. Sustainable development plays an important role in shaping the energy policy of the country. Under this context the objectives of reducing environmental hazards and of adapting economic activity to the principles of sustainable development are rather important for Finland.

In addition, the price and availability prospects of imported energy and the increased international decision-making have an effect on the energy policy. 

Currently, international cooperation is an important factor for the implementation of the national energy policy and Finland is trying to follow this tendency. In recent years, the role of the EU in steering energy policy has increased despite the fact that the EC Treaty contains no mention of a common energy policy at European level. Additionally, Finland participates in the oil distribution and security of supply systems of the International Energy Agency IEA and is bound, through numerous international organisations, such as the NEA, IAEA and Euratom, to wide-scoped cooperation in the fields of nuclear energy and nuclear surveillance.

Kyriazis Vasileios,
Epicos Newsletter Head Editor