Background: Long ruled by foreign powers, including Sweden and the pre-revolutionary Russian Empire, Finland finally declared independence in 1917. During World War II, Finland fought the USSR twice and then the Germans toward the end of the war. In the following half-century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy. Per capita income has risen to the West European level.

Map reference: Arctic Region, Europe, Standard Time Zones of the World

Area
Total: land: 305,470 km²

Land boundaries: total 2,628 km, Norway 729 km, Sweden 586 km, Russia 1,313 km

Coastline: 1,126 km (excludes islands and coastal indentations)
Contiguous zone: 6 nm
Continental shelf: 200 m depth or to depth of exploitation
Exclusive fishing zone: 12 nm
Territorial sea: 4 nm

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

Terrain: mostly low, flat to rolling plains interspersed with lakes and low hills

Natural resources: timber, copper, zinc, iron ore, silver

Land use
Arable land: 8%
Permanent crops: 0%
Meadows and pastures: 0%
Forest and woodland: 76%
Other: 16%

Irrigated land: 620 km² (1989 est.)

Population: 5,050,942 (July 1993 est.)
Growth rate: 0.37% (1993 est.)

Nationality
Noun: Finn(s)
Adjective: Finnish

Ethnic groups: Finn, Swede, Lapp, Gypsy, Tatar

Languages: Finnish 93.5% (official), Swedish 6.3% (official), small Lapp- and Russian-speaking minorities

Religions: Evangelical Lutheran 89%, Greek Orthodox 1%, none 9%, other 1%

Population growth rate: 0.37% (1993 est.)

Birth rate: 12.61 births/1000 population (1993 est.)

Death rate: 9.91 deaths/1000 population (1993 est.)

Net migration rate: 1.04 migrant(s)/1000 population (1993 est.)

Environment
Current issues: permanently wet ground covers about 30% of land; population concentrated on small southwestern coastal plain
Current issues note: long boundary with Russia; Helsinki is northernmost national capital on European continent

Life expectancy at birth
Total population: 75.65 years
Male: 71.85 years
Female: 79.62 years (1993 est.)

Total fertility rate: 1.79 children born/woman (1993 est.)

Literacy: age 15 and over can read and write (1980)
Total population: 100%
Male: NA%
Female: NA%

Country name
Conventional long form: Republic of Finland
Conventional short form: Finland
Local long form: Suomen Tasavalta
Local short form: Suomi

Government type: republic

Capital: Helsinki

Administrative divisions:

National holiday
Independence Day 6 December 1917 government coalition: Center Party, Esko AHO; National Coalition (conservative) Party, Perti SALOLAINEN; Swedish People's Party, (Johan) Ole
NORRBACK; Finnish Christian League Toimi KANKAANNIEMI other parties:

Constitution: 17 July 1919

Legal system: civil law system based on Swedish law; Supreme Court may request legislation interpreting or modifying laws; accepts compulsory ICJ jurisdiction, with reservations

Suffrage: 18 years of age; universal

Executive branch: president, prime minister, deputy prime minister, Council of State (Valtioneuvosto)

Legislative branch: unicameral Parliament (Eduskunta)

Judicial branch: Supreme Court (Korkein Oikeus)

International organization participation:

Diplomatic representation
In the us chief of mission: Ambassador Jukka VALTASAARI
In the us chancery: 3,216 New Mexico Avenue NW, Washington, DC 20,016
In the us telephone: (202) 363-2,430
In the us fax: (202) 363-8,233
In the us consulates general: Los Angeles and New York
In the us consulates: Chicago and Houston
From the us chief of mission: Ambassador John H. KELLY
From the us embassy: Itainen Puistotie 14A, SF-00140, Helsinki
From the us mailing address: APO AE 9,723
From the us telephone: 358 (0) 171,931
From the us fax: 358 (0) 174,681

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 overview: Finland has a highly industrialized, largely free market economy, with per capita output two-thirds of the US figure. 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. The economy, which experienced an average of 4.9% annual growth between 1987 and 1989, sank into deep recession in 1991 as growth contracted by 6.5%. The recession - which continued in 1992 with growth contracting by 3.5% - has 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 Finnish Government has proposed efforts to increase industrial competitiveness and efficiency by an increase in exports to Western markets, cuts in public expenditures, partial privatization of state enterprises, and changes in monetary policy. In June 1991 Helsinki had tied the markka to the EC's European Currency Unit (ECU) to promote stability. Ongoing speculation resulting from a lack of confidence in the government's policies forced Helsinki to devalue the markka by about 12% in November 1991 and to indefinitely break the link in September 1992. By boosting the competitiveness of Finnish exports, these measures presumably have kept the economic downturn from being even more severe. Unemployment probably will remain a serious problem during the next few years - monthly figures in early 1993 are approaching 20% - with the majority of Finnish firms facing a weak domestic market and the troubled German and Swedish export government's budget deficit to nearly 13% in 1993. Helsinki continues to harmonize its economic policies with those of the EC during Finland's current EC membership bid.

Real gdp growth rate: -3.5% (1992)

Real gdp per capita: $15,900 (1992)

Agriculture products: accounts for 5% of GDP (including forestry; livestock production, especially dairy cattle, predominates; forestry is an important export earner and a secondary occupation for the rural population; main crops - cereals, sugar beets, potatoes; 85% self-sufficient, but short of foodgrains and fodder grains; annual fish catch about 160,000 metric tons

Industries: metal products, shipbuilding, forestry and wood processing (pulp, paper), copper refining, foodstuffs, chemicals, textiles, clothing

Industrial production growth rate: growth rate 7.6% (1992 est.)

Labor force: 2.533 million
By occupation public services: 30.4%
By occupation industry: 20.9%
By occupation commerce: 15.0%
By occupation finance insurance and business services: 10.2%
By occupation agriculture and forestry: 8.6%
By occupation transport and communications: 7.7%
By occupation construction: 7.2%

Unemployment rate: 13.1% (1992)

Budget: revenues $26.8 billion; expenditures $40.6 billion, including capital expenditures of $NA (1992)

Fiscal year: calendar year

Exports: $24.0 billion (f.o.b., 1992)
Commodoties: timber, paper and pulp, ships, machinery, clothing and footwear
Partners:

Imports: $21.2 billion (c.i.f., 1992)
Commodoties: foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, fodder grains
Partners: EC 47.2% (Germany 16.9%, UK 8.7%), EFTA 19.0% (Sweden 11.7%), US 6.1%, Japan 5.5%, Russia 7.1% (1992)

Exchange rates: markkaa (FMk) per US$1 - 5.4193 (January 1993), 4.4794 (1992), 4.0440 (1991), 3.8235 (1990), 4.2912 (1989), 4.1828 (1988)

Electricity
Production: 13,500,000 kW capacity; 55,300 million kWh produced, 11,050 kWh per capita (1992)

Military expenditures
Percent of gdp: exchange rate conversion - $1.93 billion, about 2% of GDP (1992)

Airports: 160
Usable: 157
With permanentsurface runways: 66
With runways over 3659 m: 0
With runways 2440-3659 m: 25
With runways 1220-2439 m: 22

Pipelines: natural gas 580 km

Waterways: 6,675 km total (including Saimaa Canal; 3,700 km suitable for steamers

Merchant marine:

Disputes international: none