Facts on Finland

Finnish Economy

 

Finland has transformed its economy in a matter of decades to become one of the richest countries and most stable societies in the world. In the 1950s the Finnish economy was still largely based on primary production and an agrarian workforce. Today Finland is leading or near the top of most international comparisons in terms of growth and development in the economic, technological and social spheres.

 

The largest sector of the Finnish economy is services at 65 %, followed by manufacturing and refining at 31 %. Primary production is at 3 %. Finland’s main industrial products are paper and board, electronics and metal products. Engineering and high technology industries are the leading branches of manufacturing.

 

Economic facts and figures

main industrial products (2012)

Source: Statistics Finland

 

Forests are still Finland's most crucial raw material resource. Engineering and high technology industries, supported by gaming and digital products and services, are attracting increasing amounts of international investments, joint ventures and positive media attention.

 

Taxation: Corporation tax was lowered to 20% at the beginning of 2014 (from 24,5%) is uniform for all types of corporate income, including sales profits, interest income, dividends, royalties and rental income.

 

The general value added tax (VAT) rate in Finland is 24 %. The reduced tax rate of 14% is applied to food, restaurant and catering services and animal feed.

The reduced tax rate of 10% is applied to books, newspaper and magazine subscriptions, medicines, sports and exercise services, passenger transport, accommodation services, TV and broadcasting operation fees, cultural and entertainment events, sale of works of art by the artist, all importation of works of art and copyright royalties received by copyright organizations.

 

A zero tax rate is also in use (no taxes on sale, but sellers are reimbursed VAT on production input purchases). The tax rate is indicated as calculated from prices before taxes.

 

Currency: euro (€, EUR) = 100 cents

GDP: 193 bn € (2013)

GDP per capita: at current market prices 35,569€ (2013)

GDP growth in volume: -1.4% (2013)

Monthly wages: average 3,206€; men 3,530€, women 2,891€ (2013)

Unemployment rate: 8.2% (2013)

 

General facts and figures

 

Total area: 338,000 square kilometres

Population: 5.4 million; 67% live in towns or urban areas, 33% in rural areas

Largest cities by population (2013): Helsinki (603,968), Espoo (256,824), Tampere (217,421), Vantaa (205,312), Oulu (190,847) and Turku (180,225)

Languages (2012): Finnish 89,68%, Swedish 5.36%, Lappish 0.04%, Russian 1.15%, other 3.77%. Finnish and Swedish are the official languages. English is an important business language and widely spoken.

Religion (2012): Lutheran 76.4%, Orthodox 1.1%, other 1.4%. 21% of the population are listed in the census register or their religion is unknown.

Neighbouring countries: Estonia, Sweden, Norway, Russia.

Government: The centre-right governing coalition is comprised of 19 ministerial posts held by the National Coalition Party (6), the Social Democratic Party (6), the Green League (2), Left Alliance (2), Christian Democrats (1), and the Swedish People’s Party (2).

 

Bron Invest in Finland