(Last updated: 10 Mar 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Finland. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Finland has had one of the best performing economies in the EU and its banks largely escaped the worst of the financial crisis. However with a strong reliance on the manufacture of capital goods and their components, Finland experienced one of the deepest contractions in the Eurozone in 2009. In 2010, consumer confidence recovered somewhat and modest growth is expected in 2011.

Finland is an advanced industrial economy with the metal, engineering and electronics industries accounting for 50 per cent of export revenues, and the forest products industry for 30 per cent. Finland is said to be ‘the most online nation in the world’, with more mobile phones and Internet connections per capita than any other country.

Finland is recognised internationally for its strong education system and is repeatedly ranked amongst the world’s most innovative countries with a significant industry share of research and development and strong incentives for risk-taking and collaboration for public funded research. Finland is, however, facing the challenge of maintaining international competiveness and economic growth with an ageing population.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

The head of State is the President who is elected by a direct national election for a period of six years. Tarja Halonen has been the President since March 2000. The Government must enjoy the confidence of parliament which has 200 members elected every four years.

The semi-autonomous province of Åland Islands occupies a special position because it has the right to draw up laws concerning its own affairs and the right to determine its own budget. The Åland Islands also forms a demilitarised area.

Trade relations and statistics

Finland is a member of the United Nations (UN), the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organisation (WTO).

Throughout its history Finland has been caught strategically between the east and the west. The collapse of the Soviet Union and end of the Cold War allowed Finland greater foreign policy flexibility, eventually contributing to its decision to join the EU in 1995. Close cooperation with the EU is now one of Finland's main foreign and trade policy priorities.

Australia and Finland enjoy warm and friendly bilateral relations, boosted by Finland's engagement in the Asia-Pacific region. Multilateral cooperation is an important element of bilateral relations.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.