Finland: Robust

Economic activity grew rapidly in the first half of 2006. Strong growth this year is partly explained by the rebound from last year’s labour dispute in the forestry industry. But underlying growth is also robust, with output expected to expand at close to its trend rate of 3% over the next two years. Unemployment is projected to fall to around 7% by the end of the projection period, which would be the lowest rate since the early 1990s.
To facilitate job creation and alleviate bottlenecks in labour supply due to the ageing of the population, remaining pathways to early retirement should be phased out and greater wage flexibility in the central wage agreements put in place. To avoid a pronounced house price cycle, incentives for municipalities to provide land for house building in fast-growing regions need to be sharpened.
Population (000s), 20055 246
Area (000 sq km)338
CurrencyEuro
GDP (Billion USD), 2005164.6
Life expectancy at birth (Women, Men), 200482.3, 75.3
Total labour force (000s), 20052 641
Government typeRepublic
Indicators% change unless otherwise indicated
200620072008
GDP growth5.02.82.7
Consumer price index1.31.41.5
Unemployment rate (%)7.87.67.4
General government financial balance
(% GDP)
2.52.42.2
Current account balance (% GDP)6.87.47.7
Source: OECD©OECD Observer No. 258/259, December 2006


Economic data

GDP growth: -1.8% Q1 2020/Q4 2019
Consumer price inflation: 0.9% Apr 2020 annual
Trade (G20): -4.3% exp, -3.9% imp, Q1 2020/Q4 2019
Unemployment: 8.4% Apr 2020
Last update: 9 July 2020

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