Part 289

Diplomatic representation from the US: chief of mission: Ambassador Derek N. SHEARER embassy: Itainen Puistotie 14A, FIN-00140, Helsinki mailing address: APO AE 09723 telephone: (9) 171931 FAX : (9) 174681

Flag description: 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

Economy - 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 has come back from the recession of 1990-92, which had 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 Finns voted in an October 1994 referendum to enter the EU, and Finland officially joined the Union on 1 January 1995. Attempts to cut the unacceptably high rate of unemployment and increasing integration with Western Europe will dominate the economic picture over the next few years.

GDP: purchasing power parity - $97.1 billion (1996 est.)

GDP - real growth rate: 2.5% (1996 est.)

GDP - per capita: purchasing power parity - $19,000 (1996 est.)

GDP - composition by sector: agriculture : 7% industry: 37% services: 56% (1994)

Inflation rate - consumer price index: 0.7% (1996)

Labor force: total: 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%

Unemployment rate: 16.6% (1996)

Budget: revenues: $25.9 billion expenditures: $35 billion, including capital expenditures of $NA (1995 est.)

Industries: metal products, shipbuilding, pulp and paper, copper refining, foodstuffs, chemicals, textiles, clothing

Industrial production growth rate: 7.4% (1995)

Electricity - capacity: 14.14 million kW (1994)

Electricity - production: 60.5 billion kWh (1995)

Electricity - consumption per capita: 12,373 kWh (1995 est.)

Agriculture - products: cereals, sugar beets, potatoes; dairy cattle; annual fish catch about 160,000 metric tons

Exports: total value: $29.7 billion (f.o.b., 1994) commodities: paper and pulp, machinery, chemicals, metals, timber partners: EU 46.5% (Germany 13.4%, UK 10.3%), Sweden 11%, US 7.2%, Japan 2.1%, FSU 8.6% (1994)

Imports: total value : $23.2 billion (c.i.f., 1994) commodities: foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, fodder grains partners : EU 44% (Germany 15%, UK 8.3%), Sweden 10.4%, US 7.6%, Japan 6.5%, FSU 10.3 (1994)

Debt - external: $30 billion (December 1993)

Economic aid: donor : ODA, $355 million (1993)

Currency: 1 markka (FMk) or Finmark = 100 pennia

Exchange rates: markkaa (FMk) per US$1 - 4.7765 (January 1997), 4.5936 (1996), 4.3667 (1995), 5.2235 (1994), 5.7123 (1993), 4.4794 (1992)

Fiscal year: calendar year

@Finland:Communications

Telephones: 2.5 million (1995 est.)

Telephone system: good service from cable and microwave radio relay network domestic: cable and microwave radio relay international : 1 submarine cable; satellite earth stations - access to Intelsat transmission service via a Swedish satellite earth station, 1 Inmarsat (Atlantic and Indian Ocean Regions); note - Finland shares the Inmarsat earth station with the other Nordic countries (Denmark, Iceland, Norway, and Sweden)