US diplomatic representation:
chief of mission: Ambassador Derek N. SHEARER
embassy: Itainen Puistotie 14A, FIN-00140, Helsinki
mailing address: APO AE 09723
telephone: [358] (0) 171931
FAX: [358] (0) 174681
Flag: white with a blue cross that extends to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag)
Economy ———-
Economic overview: Finland has a highly industrialized, largely free-market economy, with per capita output equaling that of the UK, France and Italy. Its key economic sector is manufacturing - principally the wood, metals, and engineering industries. Trade is important, with the export of goods representing about 30% of GDP. 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. The economy, which experienced an average of 4.9% annual growth between 1987 and 1989, sank into deep recession in 1991 as GDP contracted by 6.5%. The recession - which continued in 1992 with GDP contracting by 4.1% - has been caused by economic overheating, depressed foreign markets, and the dismantling of the barter system between Finland and the former Soviet Union under which Soviet oil and gas had been exchanged for Finnish manufactured goods. The Finnish Government has proposed efforts to increase industrial competitiveness and efficiency by an increase in exports to Western markets, cuts in public expenditures, partial privatization of state enterprises, and changes in monetary policy. In June 1991 Helsinki had tied the markka to the European Union's (EU) European Currency Unit (ECU) to promote stability. Ongoing speculation resulting from a lack of confidence in the government's policies forced Helsinki to devalue the markka by about 12% in November 1991 and to indefinitely break the link in September 1992. The devaluations have boosted the competitiveness of Finnish exports. The recession bottomed out in 1993, and Finland participated in the general European upturn of 1994. Unemployment probably will remain a serious problem during the next few years; the majority of Finnish firms face a weak domestic market and the troubled German and Swedish export markets. The Finns voted in an October 1994 referendum to enter the EU, and Finland officially joined the Union on 1 January 1995. Increasing integration with Western Europe will dominate the economic picture over the next few years.
GDP: purchasing power parity - $92.4 billion (1995 est.)
GDP real growth rate: 5% (1995 est.)
GDP per capita: $18,200 (1995 est.)
GDP composition by sector: agriculture: 4.6% industry: 28% services: 67.4% (1994)
Inflation rate (consumer prices): 2% (1995 est.)
Labor force: 2.533 million
by occupation: public services 30.4%, industry 20.9%, commerce
15.0%, finance, insurance, and business services 10.2%, agriculture
and forestry 8.6%, transport and communications 7.7%, construction
7.2%