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Country Analysis Report - Finland - In-depth PESTLE Insights


The country analysis report on Finland provides a wide array of analytical inputs to analyze the country’s performance, and the objective is to help the reader to make business decisions and prepare for the future. The report on Finland analyzes the political, economic, social, technological, legal and environmental (PESTLE) structure of Finland. The report provides a holistic view of Finland from historical, current and future perspective. Insightful analysis on critical current and future issues is presented through detailed SCPT (strengths, challenges, prospects and threats /risks) analysis for each of the PESTLE segments. In addition, the PESTLE segments are supplemented with relevant quantitative data to support trend analysis. The PESTLE country analysis report series provides an in-depth analysis of 50 major countries.

Features and Benefits

- Understanding gained from the country analysis report on Finland can be used to plan business investments or market entry apart from a holistic view of the country.
- Political section on Finland provides inputs about the political system, key figures in the country, and governance indicators.
- Economic section on Finland outlines the economic story of the country to provide a balanced assessment on core macro-economic issues.
- Social section on Finland enables understanding of customer demographics through the income distribution, rural-urban segmentation and centres of affluence, healthcare and educational scenario in the country.
- Technological section on Finland provides strategic inputs on information communications and technology, technological laws and policies, technological gaps, patents data and relevant laws.
- Legal section on Finland provides information about the legal structure, corporate laws, business set-up procedures and the tax regime.
- Environmental section provides information on environmental policies in Finland and the performance in terms of important environmental indicators.


PESTLE analysis of Finland identifies issues that affect the country’s performance through the prism of current strengths (strengths), current challenges (weaknesses), future prospects (opportunities) and future risks (threats).
The political landscape discusses the evolution of the political scenario in Finland in different periods. The economic, social, foreign and defence policies are considered in the political landscape section. It also discusses the performance of the country as per World Bank Governance Indicators.
The economic landscape describes the evolution of the economy of Finland in different periods. It also examines the country’s performance in terms of GDP growth, composition by sector (agriculture, industry and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector and employment. The economic landscape also explains the financial system in the country, especially with regard to financial authorities/regulators.
The social landscape covers the demographics, education and healthcare scenario in Finland. The social welfare policies of the government along with the country’s performance in terms of healthcare, income distribution and education are also provided.
The technological landscape discusses the structure and policies in terms of Intellectual property, research & development, technology agreements/pacts; and policies related to the promotion of technology in Finland.
The legal landscape examines the structure of the judicial system, legislation affecting businesses, tax regulations, labor laws, trade regulations and corporate governance in Finland.
The environmental landscape in Finland discusses the environmental regulations and policies of the country. The performance of the country in terms of in terms of environmental indicators and impact of environmental policies is also examined.

"After peaking at 5.2% in 2007 and dropping to 0.9% in 2008, the Finnish economy entered into recession, which resulted in a GDP contraction of 8% in 2009. Finland's economy recovered to register a growth rate of 2.6% in 2010. Datamonitor’s forecasts indicate that the country’s growth rate is expected to register a modest increase, reaching 3% in 2011. Forecasts also indicate that a return to pre-crisis levels is not expected during 2012–15."

Your key questions answered

- What is the outlook in terms of political stability, policies towards businesses, external front and popularity of government in Finland?
- What is the economic performance of Finland in terms of GDP growth, fiscal situation, international investment position, monetary situation, credit disbursement, and employment among other economic indicators?
- What is the performance of Finland in terms of healthcare, income distribution and education?
- What is the performance of Finland in technology intensive sectors like telecommunications and information technology, patents and R&D expenditure trends?
- What is the legal structure in Finland and are the laws conducive for investment?
- What is the performance of Finland in terms of environmental indicators and impact of environmental policies?
Overview 1
Catalyst 1
Summary 1
Key Facts and Geographic Location 9
Key facts 9
Geographical location 10
PESTLE Analysis 11
Summary 11
Political analysis 12
Economic analysis 15
Social analysis 18
Technological analysis 21
Legal analysis 24
Legal analysis 24
Environmental analysis 26
Political Landscape 29
Summary 29
Evolution 30
Structure and policies 31
Performance 34
Outlook 35
Economic Landscape 36
Summary 36
Evolution 36
Structure and policies 38
Performance 40
Outlook 49
Social Landscape 50
Summary 50
Evolution 50
Structure and policies 50
Performance 52
Outlook 55
Technological Landscape 56
Summary 56
Evolution 56
Structure and policies 56
Performance 57
Outlook 59
Legal Landscape 60
Summary 60
Evolution 60
Structure and policies 60
Performance 62
Outlook 62
Environmental Landscape 64
Summary 64
Evolution 64
Structure and policies 64
Performance 65
Outlook 65
Appendix 67
Ask the analyst 67
Datamonitor consulting 67
Disclaimer 67

Figure 1: Map of Finland 10
Figure 2: Finland – political events timeline 30
Figure 3: Finland – key political figures 31
Figure 4: Composition of Finland’s parliament 32
Figure 5: Finland – historical GDP growth, 1991–2010 37
Figure 6: GDP and GDP growth rate in Finland, 2004–14 40
Figure 7: GDP composition by sectors, 2010 41
Figure 8: Agricultural output of Finland, 2005–10 42
Figure 9: Industrial output of Finland, 2005–10 43
Figure 10: Services output of Finland, 2005–10 44
Figure 11: External trade of Finland, 2006–10 46
Figure 12: Consumer price index and CPI-based inflation in Finland, 2004–14 47
Figure 13: Rate of unemployment in Finland, 2004–14 49
Figure 14: Expenditure on healthcare in Finland, 2002–13 53
Figure 15: Government expenditure on education in Finland, 2002–13 54
Figure 16: Growth rate of mobile and fixed line subscribers in Finland, 2002–13 58

Table 1: Finland – key fundamentals 4
Table 2: Finland – key facts 9
Table 3: Analysis of Finland’s political landscape 12
Table 4: Analysis of Finland’s economy 15
Table 5: Analysis of Finland’s social system 18
Table 6: Analysis of Finland’s technology landscape 21
Table 7: Comparative performance on receipt of patents, 2000–10 22
Table 8: Analysis of Finland’s legal landscape 24
Table 9: Analysis of Finland’s environmental landscape 26
Table 10: Mid-year population by age, 2010 51
Table 11: Comparative performance on receipt of patents, 2000–10 (USPTO) 57

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