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Economy and Banking Sector of Finland

National Currency

Euro (EUR)

Finland joined the Euro Area on 1 January 1999.

GDP

Nominal GDP (2019)
240.1 bln EUR  (+0.03%)
Nominal GDP per Capita (2019)
43,480 EUR  (+0.03%)
Real GDP Growth (2019)
1.0 %  (2018: 2.3 %)

According to Eurostat, nominal GDP of Finland in 2019 was 240.1 bln EUR.

Finland underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.3% over the past 10 years (2009 - 2019). In 2019 real GDP growth was 1.0% which was below the Euro Area average (1.2%) and below the European Union average (1.5%). Real GDP growth in 2020 - 2024 are IMF's estimates.

Real GDP Growth in Finland.

Chart 1. Real GDP Growth in Finland. Source: Eurostat, International Monetary Fund.

In 2019, nominal GDP per capita in Finland was 43,480 EUR.

Finland has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 7.3% over the past 10 years (2008 - 2018). GDP per capita at PPP in 2019 - 2024 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Finland; European Union = 100.

Chart 2. GDP Per Capita at Purchasing Power Parity in Finland; European Union = 100.

Inflation Rate

CPI, MoM (May 2020)
-0.3 %  (Apr 2020: -0.4 %)
CPI, YoY (May 2020)
-0.3 % (unchanged)
CPI, Year Average (2019)
1.1 %  (2018: 1.2 %)

According to Eurostat, inflation rate in Finland in 2019 expressed as annual percentages of average consumer prices was 1.1% which was below the Euro Area average (1.2%) and below the European Union average (1.5%). Inflation rates in 2020 - 2024 are IMF's estimates.

Inflation Rate in Finland.

Chart 3. Inflation Rate in Finland. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2019)
6.7 %  (2018: 7.4 %)

According to Eurostat, unemployment rate in Finland in 2019 was 6.7% which was below the Euro Area average (7.6%) and above the European Union average (6.3%). Unemployment rates in 2020 - 2024 are IMF's estimates.

Unemployment Rate in Finland.

Chart 4. Unemployment Rate in Finland. Source: Eurostat, International Monetary Fund.

Government Bond Yield

Government Bond Yield (Apr 2020)
0.03 %  (Mar 2020: -0.12 %)

According to Eurostat, government bond yield in Finland in April 2020 was 0.03%, compared to -0.12% in March 2020.

Government bond yield of Finland.

Chart 5. Government bond yield of Finland. Source: Eurostat.

Credit Ratings (as of Jul 2020)

Fitch
AA+ (very high credit quality), outlook stable
Moody's
Aa1 (high grade), outlook stable
Scope
AA+ (high grade), outlook stable

Finland has sovereign credit ratings assigned by American credit rating agencies Fitch and Moody's: the rating set by Fitch is AA+ (very high credit quality), outlook stable; the rating set by Moody's is Aa1 (high grade), outlook stable. Scope Ratings, the European rating agency, rated Finland as AA+ (high grade), outlook stable.

Fitch and Moody's rating data are provided for June 2020, Scope Ratings for July 2020.