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.
World-Class Expertise
Finland has developed world-class expertise in sectors like cleantech, forestry, metal and machinery manufacturing, ICT industry and services, and health and wellbeing. International investors and companies can benefit from the clusters and centers of expertise in these business sectors that aim to maximize the benefits of research, networking and international cooperation.
Taxation
Corporation tax was lowered to 20% at the beginning of 2014 (from 24,5%) and 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.
Economic facts and figures
As a telling measure of its macroeconomic stability, Finland enjoys the highest possible status with the global credit rating agencies Fitch Ratings and Moody’s as Standard & Poor’s ranks Finland AA+. According to the latest report from Fitch, Finland’s AAA status “is underpinned by sound public finances, a solid external position, high income per capita, demonstrable political and social stability and an impeccable debt service record”.
Currency: euro (€, EUR) = 100 cents
GDP: 204 bn € (2014)
GDP per capita: at current market prices 35,569€ (2013)
GDP (Change): -0.4% (2014)
Monthly wages: average 3,206€; men 3,530€, women 2,891€ (2013)
Unemployment rate: 8.7% (2014)
General facts and figures
Total Area: 338,435 square kilometers of which 90 % land and 10 % internal waters. Of the land area 77 % is forest and other woodland and 9 % agricultural land.
Natural Resources: forest, copper, iron ore, other minerals, fresh water
Distances: 1,160 km from north to south, 550 km from west to east
Time: UTC +2 hours during winter, UTC +3 hours during summer
Population: 5,5 million
Population Density: 17,9 inhabitants per square kilometer
Life Expectancy at Birth: 83,5 years for females, 77,5 years for males
Languages: Finnish (89 %), Swedish (5 %), Others (6 %)
Religious Communities: Lutheran 75 %, Orthodox 1 %, No religious affiliation 22 %
Biggest Cities: Helsinki (613,000), Espoo (261,000), Tampere (220,000), Vantaa (208,000), Oulu (194,000), Turku (182,000)
