ECON1020 Country Report | Doc

ECON1020 Country Report
Cover Sheet
a. Name:
b. Student number:
c. Allocated country: Finland
d. Declaration:
I hereby declare that I was not born in or resided predominantly in the past 10 years in
the country covered by this report.
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e. Declaration:
I hereby declare that I have a written approval from the course coordinator to report on
a country that is NOT based on the last digit of my student number (because I was born
or resided predominantly in the past 10 years in that country.)
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1. Executive summary
Finland is one of the most developed countries and member of OECD. Among the four
Nordic countries, Finland holds the number one position for FDI attractiveness. During the
period of 2011 to 2018, the GDP, and GDP per capita remained much higher for Finland,
inflation rate showed a downward trend, however, unemployment rate demonstrated
fluctuations, although it is highest in Finland among the four Nordic countries, but the
performance is much better compared to the OECD average. This report provides a
synopsis of the macroeconomic performance of Finland between 2011 and 2018, followed
by its benchmarking to Denmark, its Nordic neighbour and another highly developed peer
from the OECD. The investment attractiveness and potentiality has been discussed in the
report and the environmental issues occurred due to high level of economic social
developed have been highlighted also. Based on the findings, some recommendations
have been provided and limitations for implementing those recommendations are also
discussed.

2. Macroeconomic performance of Finland
a. Economy of Finland is one of the mostly developed economies of the European
continent. It is a modern mixed market economy with very high living standards,
improved quality of life, high per capita income, very high level of the government
services system, and dependence on international trade. Service sector constitutes
around 72.7% of the Finnish economy. In the last decade, that is, 2011 onwards
Finland has shown significant growth. The GDP has increased, unemployment
decreased, and inflation rate (annual percentage) has shown downward trend
indicating a stable growth for the country. Finland is one of the developed
industrialized countries with high level of productivity (Ec.europa.eu 2019).
The trend of GDP per capita at current US$, inflation rate (annual percentage) and
unemployment rate in Finland for the period 2011 to 2018 (World Bank 2020) are
presented in the images below.
Figure 1: GDP per capita (current US $), Finland, 2011 -2018
(Source: World Bank 2020)

Figure 2: Inflation rate trend in Finland, 2011- 2018
(Source: World Bank 2020)
Figure 3: Unemployment rates in Finland, 2011 - 2018
(Source: World Bank 2020)
It can be seen that all the three indicators have shown progress over the period
between 2011 and 2018. GDP per capita for Finland has shown a fluctuation,