Finland's geography and climate make transportation and
communications difficult. For centuries, coastal ports,
which
were closed by ice each winter for at least one month in
the
south and for as long as five months in the north,
provided the
only links with Europe. Internal communications, hampered
by long
distances interrupted by swamps and bogs, were likewise
paralyzed
each spring by slowly melting snows. As in most
industrialized
countries, during the postwar period newer technologies
supplanted traditional means of transport. Thus, in the
early
postwar years, truck traffic grew at the expense of rail
and
water transport, only to be displaced later by airplanes.
Traditional mail gave way to telecommunications. External
commerce still depended primarily on oceangoing ships, but
air
freight services provided an increasingly important
supplement.
The natural environment compensated somewhat for the
difficulties of climate and geography in the form of a
network of
lakes and rivers that provided an economical means of
moving
forest products downstream to processing centers and on to
ports
for export. Although trucks handled more than half of
Finland's
forest products in the late 1980s, the wood industries
still
operated some 9,200 kilometers of floatways. Internal
waterways
for general use covered another 6,100 kilometers, of which
about
70 kilometers were canals. The most important artificial
waterway, the Saimaa Canal, runs from Lake Saimaa to the
Baltic
port of Viipuri
(see
fig. 18). In 1962 the Soviet Union,
which
had annexed the waterway and the port after World War II,
granted
a long-term lease to Finland that allowed the Finns to
renovate
and to operate them.
Finland lagged behind the other Nordic countries in
developing railroads--as late as the early 1970s, Finland
continued to lay tracks. Yet by the early 1980s, the
railroads
had begun to decline in importance, and of the more than
9,000
kilometers of track, less than 6,000 kilometers of track
were in
operation (25 percent of which was electrified). The rail
network
served southern and central Finland better than the north,
and it
specialized in carrying bulk products to processing
centers and
to export ports. The railroads, almost all of which were
stateowned , had lost business and were running operating
deficits by
the mid-1980s. Finnish railroads used the same gauge as
Russian
lines (1.524 meters), which allowed easy exchanges with
Soviet
railroads but blocked shipments to Finland's Western
neighbors.
By 1987 Finland maintained about 76,000 kilometers of
roadways, of which 43,000 kilometers were paved roads and
200
kilometers were divided highways. During the first half of
the
1980s, local routes accounted for most new road
construction, as
the national highways were largely complete. Although the
highways covered most of the country, specialists reported
that
Finland would need to improve its major routes to meet
European
standards and to allow increased trade with Western Europe
during
the 1990s.
By 1987 the Finns operated about 1.7 million
automobiles,
9,000 buses, 52,000 freight trucks, 135,000 vans and
delivery
trucks, and 50,000 motorcycles. During the early 1980s,
the
number of vehicles had risen by almost 20 percent as more
and
more Finns purchased cars and motorcycles and many
companies
shifted from rail to road transport.
Finland's position on the northern shore of the Baltic,
far
from the commercial centers of Western Europe, placed a
premium
on shipping. Because harbors freeze up each winter, the
Finns
have employed a fleet of icebreakers and have equipped
many ships
with strengthened hulls, the construction of which has
become a
specialty of the metal-working industry
(see Industry
, this ch.).
The national oceangoing fleet expanded tenfold to about
2.5
million gross registered tons (GRT) between the end of
World War
II and about 1980, but it shrank thereafter to about 1.6
million
GRT. The Finnish merchant marine carried most of the
country's
trade and provided a significant source of foreign
exchange;
however, merchant shipping declined somewhat in the 1980s
because
of competition from air freight services and from foreign
shipping. In the 1980s, Finland's ports handled about 50
million
net registered tons each year, of which 60 percent were
exports.
Ships also carried a significant number of passengers, 2
million
of whom traveled by way of Helsinki.
Air transport grew rapidly in the 1970s and the 1980s.
For
passengers, domestic traffic was growing faster than
international travel, but for freight, the reverse was
true.
Affordable air fares--the lowest in Europe--contributed to
the
rapid expansion of domestic air travel. Almost 3 million
passengers and more than 50,000 tons of freight and mail
passed
through the main airport, Helsinki-Vantaa, each year.
Finland
also operated about forty smaller airports.
Two state-controlled firms, Finnair and Karair,
dominated
Finnish airways. The state owned a majority of shares in
Finnair
(founded in 1923), which maintained regular international
and
domestic service. Karair, established in 1957, was linked
to
Finnair (which owned a majority interest) and specialized
in
charter flights.
Finland's postal and telecommunications services
maintained
efficient links among the country's thinly settled
population. In
the late 1980s, the government operated about 3,600 post
offices
and 581 telegraph bureaus. Nevertheless, many rural areas
were so
sparsely inhabited that the postal carriers made
deliveries to
groups of mailboxes located at crossroads. The relatively
great
distances among settlements made telecommunications
popular; by
the late 1980s, telecommunications had become more
important than
traditional postal services. Among European states,
Finland was
unusual in maintaining a combination of public and private
telephone systems. Some fifty-eight companies provided
services
in local communities, while the Public Telecommunications
Agency
(PTA) enjoyed a monopoly on long-distance services.
Starting in
the mid-1980s, local companies began to compete in the
lucrative
data transmission field, a move that put them in
competition with
the PTA's long-distance services. Observers expected that
pending
legislation would effectively deregulate the
telecommunications
market.
|
Background | | Finland was a province and then a grand duchy under Sweden from the 12th to the 19th centuries, and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union - albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now among the highest in Western Europe. A member of the European Union since 1995, Finland was the only Nordic state to join the euro system at its initiation in January 1999.
|
|
Location | | Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Sweden and Russia
|
|
Area(sq km) | | total: 338,145 sq km
land: 303,815 sq km
water: 34,330 sq km
|
|
Geographic coordinates | | 64 00 N, 26 00 E
|
|
Land boundaries(km) | | total: 2,654 km
border countries: Norway 727 km, Sweden 614 km, Russia 1,313 km
|
|
Coastline(km) | | 1,250 km
|
|
Climate | | cold temperate; potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes
|
|
Elevation extremes(m) | | lowest point: Baltic Sea 0 m
highest point: Haltiatunturi 1,328 m
|
|
Natural resources | | timber, iron ore, copper, lead, zinc, chromite, nickel, gold, silver, limestone
|
|
Land use(%) | | arable land: 6.54%
permanent crops: 0.02%
other: 93.44% (2005)
|
|
Irrigated land(sq km) | | 640 sq km (2003)
|
|
Total renewable water resources(cu km) | | 110 cu km (2005)
|
|
Freshwater withdrawal (domestic/industrial/agricultural) | | total: 2.33 cu km/yr (14%/84%/3%)
per capita: 444 cu m/yr (1999)
|
|
Natural hazards | | NA
|
|
Environment - current issues | | air pollution from manufacturing and power plants contributing to acid rain; water pollution from industrial wastes, agricultural chemicals; habitat loss threatens wildlife populations
|
|
Environment - international agreements | | party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified: none of the selected agreements
|
|
Geography - note | | long boundary with Russia; Helsinki is northernmost national capital on European continent; population concentrated on small southwestern coastal plain
|
|
Population | | 5,250,275 (July 2009 est.)
|
|
Age structure(%) | | 0-14 years: 16.4% (male 438,425/female 422,777)
15-64 years: 66.8% (male 1,773,495/female 1,732,792)
65 years and over: 16.8% (male 357,811/female 524,975) (2009 est.)
|
|
Median age(years) | | total: 42.1 years
male: 40.5 years
female: 43.7 years (2009 est.)
|
|
Population growth rate(%) | | 0.098% (2009 est.)
|
|
Birth rate(births/1,000 population) | | 10.38 births/1,000 population (2009 est.)
|
|
Death rate(deaths/1,000 population) | | 10.07 deaths/1,000 population (July 2009 est.)
|
|
Net migration rate(migrant(s)/1,000 population) | | 0.68 migrant(s)/1,000 population (2009 est.)
|
|
Urbanization(%) | | urban population: 63% of total population (2008)
rate of urbanization: 0.8% annual rate of change (2005-10 est.)
|
|
Sex ratio(male(s)/female) | | at birth: 1.04 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 1.02 male(s)/female
65 years and over: 0.68 male(s)/female
total population: 0.96 male(s)/female (2009 est.)
|
|
Infant mortality rate(deaths/1,000 live births) | | total: 3.47 deaths/1,000 live births
male: 3.78 deaths/1,000 live births
female: 3.15 deaths/1,000 live births (2009 est.)
|
|
Life expectancy at birth(years) | | total population: 78.97 years
male: 75.48 years
female: 82.61 years (2009 est.)
|
|
Total fertility rate(children born/woman) | | 1.73 children born/woman (2009 est.)
|
|
Nationality | | noun: Finn(s)
adjective: Finnish
|
|
Ethnic groups(%) | | Finn 93.4%, Swede 5.6%, Russian 0.5%, Estonian 0.3%, Roma (Gypsy) 0.1%, Sami 0.1% (2006)
|
|
Religions(%) | | Lutheran Church of Finland 82.5%, Orthodox Church 1.1%, other Christian 1.1%, other 0.1%, none 15.1% (2006)
|
|
Languages(%) | | Finnish 91.2% (official), Swedish 5.5% (official), other 3.3% (small Sami- and Russian-speaking minorities) (2007)
|
|
Country name | | conventional long form: Republic of Finland
conventional short form: Finland
local long form: Suomen tasavalta/Republiken Finland
local short form: Suomi/Finland
|
|
Government type | | republic
|
|
Capital | | name: Helsinki
geographic coordinates: 60 10 N, 24 56 E
time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
|
|
Administrative divisions | | 6 provinces (laanit, singular - laani); Ahvenanmaan Laani (Aland), Etela-Suomen Laani (Southern Finland), Ita-Suomen Laani (Eastern Finland), Lansi-Suomen Laani (Western Finland), Lapin Laani (Lapland), Oulun Laani
|
|
Constitution | | 1-Mar-00
|
|
Legal system | | civil law system based on Swedish law; the president may request the Supreme Court to review laws; accepts compulsory ICJ jurisdiction with reservations
|
|
Suffrage | | 18 years of age; universal
|
|
Executive branch | | chief of state: President Tarja HALONEN (since 1 March 2000)
head of government: Prime Minister Matti VANHANEN (since 24 June 2003); Deputy Prime Minister Jyrki KATAINEN (since 19 April 2007)
cabinet: Council of State or Valtioneuvosto appointed by the president, responsible to parliament
elections: president elected by popular vote for a six-year term (eligible for a second term); election last held 15 January 2006 (next to be held in January 2012); the president appoints the prime minister and deputy prime minister from the majority party or the majority coalition after parliamentary elections and the parliament must approve the appointment; Prime Minister VANHANEN reelected 17 April 2007
election results: percent of vote - Tarja HALONEN (SDP) 46.3%, Sauli NIINISTO (Kok) 24.1%, Matti VANHANEN (Kesk) 18.6%, Heidi HAUTALA (VIHR) 3.5%; a runoff election between HALONEN and NIINISTO was held 29 January 2006 - HALONEN 51.8%, NIINISTO 48.2%; Matti VANHANEN reelected prime minister; election results 121-71
note: government coalition - Kesk, KOK, VIHR, and SFP
|
|
Legislative branch | | unicameral Parliament or Eduskunta (200 seats; members are elected by popular vote on a proportional basis to serve four-year terms)
elections: last held 18 March 2007 (next to be held March 2011)
election results: percent of vote by party - Kesk 23.1%, Kok 22.3%, SDP 21.4%, VAS 8.8%, VIHR 8.5%, KD 4.9%, SFP 4.5%, True Finns 4.1%, other 3.4%; seats by party - Kesk 51, Kok 50, SDP 45, VAS 17, VIHR 15, SFP 9, KD 7, True Finns 5, other 1
|
|
Judicial branch | | Supreme Court or Korkein Oikeus (judges appointed by the president)
|
|
International organization participation | | ADB (nonregional member), AfDB (nonregional member), Arctic Council, Australia Group, BIS, CBSS, CE, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, G-9, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURCAT, NC, NEA, NIB, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, PFP, Schengen Convention, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMIL, UNMIS, UNMOGIP, UNTSO, UPU, WCO, WEU (observer), WFTU, WHO, WIPO, WMO, WTO, ZC
|
|
Flag description | | white with a blue cross extending 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); the blue represents the thousands of lakes scattered across the country, while the white is for the snow that covers the land in winter
|
|
Economy - overview | | Finland has a highly industrialized, largely free-market economy with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important; Finland's ratio of exports to GDP has risen from a quarter to 37% over the past 15 years. Finland excels in high-tech exports such as mobile phones. 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. Although Finland has been one of the best performing economies within the EU in recent years and its banks and financial markets have avoided the worst of global financial crisis, the world slowdown has hit export growth and domestic demand and will serve as a brake on economic growth in 2009 and 2010. The slowdown of construction, other investment, and exports will cause unemployment to rise. During 2009, unemployment will climb to over 8% of the labor force. Long-term challenges include the need to address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.
|
|
GDP (purchasing power parity) | | $194 billion (2008 est.)
$192.4 billion (2007 est.)
$184.8 billion (2006 est.)
note: data are in 2008 US dollars
|
|
GDP (official exchange rate) | | $271.9 billion (2008 est.)
|
|
GDP - real growth rate(%) | | 0.8% (2008 est.)
4.1% (2007 est.)
4.9% (2006 est.)
|
|
GDP - per capita (PPP) | | $37,000 (2008 est.)
$36,700 (2007 est.)
$35,300 (2006 est.)
note: data are in 2008 US dollars
|
|
GDP - composition by sector(%) | | agriculture: 2.8%
industry: 32.4%
services: 64.9% (2008 est.)
|
|
Labor force | | 2.703 million (2008 est.)
|
|
Labor force - by occupation(%) | | agriculture and forestry 4.5%, industry 18.3%, construction 7.3%, commerce 16%, finance, insurance, and business services 14.5%, transport and communications 7%, public services 32.4% (2008)
|
|
Unemployment rate(%) | | 6.4% (2008 est.)
6.9% (2007 est.)
|
|
Population below poverty line(%) | | NA%
|
|
Household income or consumption by percentage share(%) | | lowest 10%: 3.6%
highest 10%: 24.7% (2007)
|
|
Distribution of family income - Gini index | | 29.5 (2007)
25.6 (1991)
|
|
Investment (gross fixed)(% of GDP) | | 20.6% of GDP (2008 est.)
|
|
Budget | | revenues: $143.8 billion
expenditures: $132.3 billion (2008 est.)
|
|
Inflation rate (consumer prices)(%) | | 4.1% (2008 est.)
2.5% (2007 est.)
|
|
Stock of money | | $NA (31December 2008)
$NA (31 December 2007)
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
|
|
Stock of quasi money | | $NA (31 December 2008)
$NA (31 December 2007)
|
|
Stock of domestic credit | | $241.1 billion (31 December 2008)
$225.4 billion (31 December 2007)
|
|
Market value of publicly traded shares | | $NA (31 December 2008)
$369.2 billion (31 December 2007)
$265.5 billion (31 December 2006)
|
|
Public debt(% of GDP) | | 33.7% of GDP (2008 est.)
46.8% of GDP (2004 est.)
|
|
Agriculture - products | | barley, wheat, sugar beets, potatoes; dairy cattle; fish
|
|
Industries | | metals and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing
|
|
Industrial production growth rate(%) | | 0.4% (2008 est.)
|
|
Current account balance | | $5.518 billion (2008 est.)
$10.12 billion (2007 est.)
|
|
Exports | | $96.62 billion (2008 est.)
$90.2 billion (2007 est.)
|
|
Exports - commodities(%) | | electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber
|
|
Exports - partners(%) | | Russia 11.6%, Sweden 10%, Germany 10%, US 6.4%, UK 5.5%, Netherlands 5.1% (2008)
|
|
Imports | | $87.51 billion (2008 est.)
$78.22 billion (2007 est.)
|
|
Imports - commodities(%) | | foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, grains
|
|
Imports - partners(%) | | Russia 16.3%, Germany 15.7%, Sweden 13.6%, Netherlands 6.3%, China 5.1%, UK 4.2% (2008)
|
|
Reserves of foreign exchange and gold | | $8.346 billion (31 December 2008 est.)
$8.385 billion (31 December 2007 est.)
|
|
Debt - external | | $339.5 billion (31 December 2008)
$314.1 billion (31 December 2007)
|
|
Stock of direct foreign investment - at home | | $84.44 billion (31 December 2008 est.)
$88.69 billion (31 December 2007 est.)
|
|
Stock of direct foreign investment - abroad | | $116 billion (31 December 2008 est.)
$114.2 billion (31 December 2007 est.)
|
|
Exchange rates | | euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)
|
|
Currency (code) | | euro (EUR)
|
|
Telephones - main lines in use | | 1.65 million (2008)
|
|
Telephones - mobile cellular | | 6.83 million (2008)
|
|
Telephone system | | general assessment: modern system with excellent service
domestic: digital fiber-optic fixed-line network and an extensive cellular network provide domestic needs
international: country code - 358; submarine cables provide links to Estonia and Sweden; 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)
|
|
Internet country code | | .fi; note - Aland Islands assigned .ax
|
|
Internet users | | 4.383 million (2008)
|
|
Airports | | 148 (2009)
|
|
Pipelines(km) | | gas 694 km (2008)
|
|
Roadways(km) | | total: 78,141 km
paved: 50,914 km (includes 700 km of expressways)
unpaved: 27,227 km (2009)
|
|
Ports and terminals | | Hamina, Helsinki, Kokkola, Kotka, Naantali, Pori, Raahe, Rauma, Turku
|
|
Military branches | | Finnish Defense Forces (FDF): Army, Navy (includes Coastal Defense Forces), Air Force (Suomen Ilmavoimat) (2007)
|
|
Military service age and obligation(years of age) | | 18 years of age for male voluntary and compulsory - and female voluntary - national military and nonmilitary service; service obligation 6-12 months; mandatory retirement at age 60 (2008)
|
|
Manpower available for military service | | males age 16-49: 1,169,910
females age 16-49: 1,121,187 (2008 est.)
|
|
Manpower fit for military service | | males age 16-49: 962,479
females age 16-49: 920,297 (2009 est.)
|
|
Manpower reaching militarily significant age annually | | male: 33,784
female: 32,621 (2009 est.)
|
|
Military expenditures(% of GDP) | | 2% of GDP (2005 est.)
|
|
Disputes - international | | various groups in Finland advocate restoration of Karelia and other areas ceded to the Soviet Union, but the Finnish Government asserts no territorial demands
|
|
Electricity - production(kWh) | | 77.24 billion kWh (2007 est.)
|
|
Electricity - production by source(%) | | fossil fuel: 39%
hydro: 18.7%
nuclear: 30.4%
other: 11.8% (2001)
|
|
Electricity - consumption(kWh) | | 86.9 billion kWh (2008)
|
|
Electricity - exports(kWh) | | 3.335 billion kWh (2008 est.)
|
|
Electricity - imports(kWh) | | 16.11 billion kWh (2008 est.)
|
|
Oil - production(bbl/day) | | 9,789 bbl/day (2008 est.)
|
|
Oil - consumption(bbl/day) | | 215,600 bbl/day (2008 est.)
|
|
Oil - exports(bbl/day) | | 133,000 bbl/day (2008 est.)
|
|
Oil - imports(bbl/day) | | 347,400 bbl/day (2008 est.)
|
|
Economic aid - donor | | ODA, $1.023 billion (2007)
|
|
Oil - proved reserves(bbl) | | 0 bbl
|
|
Natural gas - production(cu m) | | 0 cu m (2008 est.)
|
|
Natural gas - consumption(cu m) | | 4.735 billion cu m (2008 est.)
|
|
Natural gas - exports(cu m) | | 0 cu m (2008)
|
|
Natural gas - proved reserves(cu m) | | 0 cu m (1 January 2009 est.)
|
|
HIV/AIDS - adult prevalence rate(%) | | less than 0.1% (2007 est.)
|
|
HIV/AIDS - people living with HIV/AIDS | | 2,400 (2007 est.)
|
|
HIV/AIDS - deaths | | fewer than 100 (2003 est.)
|
|
Literacy(%) | | definition: age 15 and over can read and write
total population: 100%
male: 100%
female: 100% (2000 est.)
|
|
School life expectancy (primary to tertiary education)(years) | | total: 17 years
male: 17 years
female: 18 years (2006)
|
|
Education expenditures(% of GDP) | | 6.4% of GDP (2005)
|
