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Finland ECONOMY
Gross Domestic Product (GDP): US$70.5 billion in
1986
(US$14,388 per capita). Economy grew faster than other
Western
industrialized countries throughout 1980s, averaging about
3.3
percent per year from 1980 to 1986.
Agriculture and Forestry: Below 8 percent of GDP
and
about 10 percent of employment in 1986, but sufficient to
make
country self-sufficient in staple foods and provide raw
material
to crucial wood-processing industries.
Industry: Major growth sector, contributing
nearly 35
percent of GDP and 32 percent of employment in 1986. Main
engine
of postwar structural change, industry faced increasing
competition in 1980s causing restructuring and a shift to
hightechnology products.
Services: Largest sector, providing nearly 58
percent
of GDP and about 57 percent of employment in 1986.
Generally
labor-intensive and uncompetitive, but banking,
engineering, and
consulting showed promise.
Imports: Raw materials, especially fuels,
minerals, and
chemicals, but growing share of foods and consumer goods.
Exports: Primarily industrial goods, especially
forestry products and metal products; growing
high-technology
exports.
Major Trade Partners: Soviet Union largest
single trade
partner, but West European countries together accounted
for
nearly two-thirds of trade.
Balance of Payments: Despite positive trade
balance,
Finnish tourist expenditures abroad and debt service
caused
continuing current account deficits in 1980s.
General Economic Conditions: Standard of living
high
despite difficult environment. Inflation traditionally
exceeded
that of other industrialized countries, but fell below 4
percent
in 1986; unemployment, at about 6 percent in 1987, was
considered
Finland's most serious economic problem.
Exchange Rate: In March 1988, Finnish mark (Fmk)
4.08=US$1. Fully convertible, but some capital controls
maintained by Bank of Finland.
Data as of December 1988
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