You are here -allRefer - Reference - Country Study & Country Guide - Finland >

allRefer Reference and Encyclopedia Resource

allRefer    
allRefer
   


-- Country Study & Guide --     

 

Finland

 
Country Guide
Afghanistan
Albania
Algeria
Angola
Armenia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belize
Bhutan
Bolivia
Brazil
Bulgaria
Cambodia
Chad
Chile
China
Colombia
Caribbean Islands
Comoros
Cyprus
Czechoslovakia
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
Georgia
Germany
Germany (East)
Ghana
Guyana
Haiti
Honduras
Hungary
India
Indonesia
Iran
Iraq
Israel
Cote d'Ivoire
Japan
Jordan
Kazakhstan
Kuwait
Kyrgyzstan
Latvia
Laos
Lebanon
Libya
Lithuania
Macau
Madagascar
Maldives
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Nepal
Nicaragua
Nigeria
North Korea
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Seychelles
Singapore
Somalia
South Africa
South Korea
Soviet Union [USSR]
Spain
Sri Lanka
Sudan
Syria
Tajikistan
Thailand
Turkmenistan
Turkey
Uganda
United Arab Emirates
Uruguay
Uzbekistan
Venezuela
Vietnam
Yugoslavia
Zaire

Finland

Balance of Payments

Finland's external balance reflected the country's status as a late-industrializing economy needing large infusions of foreign capital as recently as the 1970s. The resulting foreign debt peaked at the end of 1977 at about 20 percent of GDP. Over the following decade, the Finns reduced their debt, which stood at about 16 percent of GDP in 1987. Even at this lower level, however, debt service required payments amounting to over 2 percent of GDP, a permanent drag on the balance of payments.

Although the country ran trade deficits up until the 1970s, Finland's trade performance was generally satisfactory during the 1980s, despite developments in world markets that posed special challenges, such as the need to shift exports rapidly from Eastern to Western markets after the collapse of oil prices in the mid-1980s. The balance of trade showed a surplus after 1980, which rose to about US$1.6 billion by 1986 as a result of strong foreign demand for Finnish goods (see table 20, Appendix A). The services account, however, showed growing deficits during the decade, which reached more than US$2.2 billion in 1986. The deficit on services grew out of increased Finnish tourist expenditures abroad, the decline in shipping earnings, and the continued service payments on the national debt. The transfers account likewise showed a deficit, mainly the result of Finland's growing official foreign aid to the Third World. Thus, despite the strong performance of Finland's export sector, the country had generated a deficit on the current account that reached almost US$900 million in 1986.

Over the long term, Finland's ability to continue to finance current account deficits and to service the national debt was limited primarily by the country's ability to maintain export earnings. Some analysts pointed out that after 1984, Finland's surpluses were in fact earned in exchanges with the Soviet Union (producing a surplus on a blocked account), while hard-currency trade was in deficit. Many observers noted, however, that Finland's debt was low by OECD standards, and they suggested that the country's external imbalances could be sustained for many years.

Data as of December 1988

Finland - TABLE OF CONTENTS

  • The Economy

  • Go Up - Top of Page

    Make allRefer Reference your HomepageAdd allRefer Reference to your FavoritesGo to Top of PagePrint this PageSend this Page to a Friend


    Information Courtesy: The Library of Congress - Country Studies


    Content on this web site is provided for informational purposes only. We accept no responsibility for any loss, injury or inconvenience sustained by any person resulting from information published on this site. We encourage you to verify any critical information with the relevant authorities.

     

     

     
     


    About Us | Contact Us | Terms of Use | Privacy | Links Directory
    Link to allRefer | Add allRefer Search to your site

    allRefer
    All Rights reserved. Site best viewed in 800 x 600 resolution.