Capital City: Helsinki
	It is %T:%M %A in Helsinki

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Economic trends

Finland has an industrial economy based on abundant forest resources, capital investments, and high technology. According to Davos' economic Forum 2004-2005 classification, Finland is the most competitive country in the world. Even under difficult circumstances during last few years, the Finnish economy has performed reasonably well, though the pace of activity has slowed considerably and remains subject to volatility. The economic growth is dynamic but rather instable. The GDP growth rate was 3.7% in 2004, 2.9% in 2005, 5,0% in 2006 and 4.3% in 2007. According to IMF, it is forecasted at a rate of 3.0% for 2008. The government budget will remain comfortably in surplus, despite tax cuts. Inflation has risen to 1.5% in 2007. Unemployment has decreased significantly since 1994, although the 8.4% unemployment rate for 2005 remained above the EU average but is expected to have come down to around 7.9% in 2006.

Main branches of industry

Finland has limited natural resources. Due to harsh climatic conditions, agriculture is not well developed resulting into import of major part of its food products. Agriculture presents less than 3% of the GDP. Animal breeding is the main agricultural activity. Forests cover more than two-thirds of the territory. Wood, pulp and paper industries are well developed and represent Finland's core export base. Telecommunications is the main industrial sector; especially Nokia (world leader in mobile telephony) constituting 20% of the country's exports. Biotechnology has also become a very dynamic sector and so has the tourism (especially in Lapland).

International trade

The share of foreign trade in country’s GDP has reached around 70%. Finland’s economy has responded well to the recent global economic revival, especially the telecommunications revival which account for 28% of its exports. Its three top export partners are: Russia, Sweden, and Germany; while as the top three import partners are: Germany, Russia and Sweden. Finland mainly exports electric machinery & equipment, pulp & paper, machinery, iron & steel, and vehicles. The goods mainly imported are electric & electronic equipment & components, mineral fuels & oils, machinery, iron & steel, and vehicles.