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Finland essay
 
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Finland. Custom Finland Essay Writing Service || Finland Essay samples, help

Like many other countries in the world, Finland has a free market system which entirely depends on international trade. The country was highly known for the production of trees in early 1900’s as forestry fully supported its economy. The southern part of Finland has always been known to support the economy because of its ability to support farming. As a result, the region has always had high population density which mainly depends on agriculture. The country has continued to experience technological advancement in many sectors especially in forest production, manufacturing and electronics. It is clear that forestry strongly laid the economic foundation for Finland until 1990’s when electronic advancement took control. This has led to Finland becoming a center for electronic manufacturing, being one of the world’s leading mobile phone producers. The country further specializes in production of high-tech environmental measure instruments and medical appliances (CIA).

One of the factors which have led to the growth of Finland’s economy is the cohesion which has always existed between the government, workers and the industrial sector. This has led to a tremendous growth in economy. The country enjoys a free market economy with its per capita output measuring to that of Sweden, Austria, the Netherlands and Belgium. Trade has turned out to be a key player in the economy of Finland accounting to more than 30% of its Gross Domestic Product. Moreover, Finland depends on a wide range of imports including but not limited to raw materials, manufactured goods and energy. The economy of Finland had always enjoyed stability with resistance to dangerous financial crisis in the world (Books, LLC, 2010). There was enormous contraction in the economy that was as a result of slowdown in domestic demand and exports in the year 2009. This was to affect economic growth in the year 2010. Many experts projected a rise in unemployment and national deficits.

According to the IMF report, Finland was among the most hit countries by the global economic recession although it had countless signs of recovery. The country is considered to have a sound bank management system. It faces a number of threats to asset quality and profitability. The fiscal sustainability of the economy is also at the risk of collapsing due to the aging economy. The government is therefore supposed to make budgetary arrangements and prospects to promote labor utilization and augment productivity (Finland Economy). As noted by the IMF report, the contraction of the economy led to the dependence on exports, with a drop in employment and a significant collapse in investment leading to a rise in inflation.

Although Finland experienced huge economic contractions in recent years, there is hope with consumer confidence having been restored. Economic experts project a growth of approximately 1.25% this year with the figure being expected to hit 2% in the year 2011. Despite the fact there has been a rise in VAT rates, there is every indication that the inflation which has been experienced will decrease with a low output. Additionally, medium-term output is likely to lower as indicated by Finland Statistics. Due to this state, EU made some recommendations which were aimed at improving the economy of Finland (Finland—2010 Article IV). These included the extension of liquidity and the expansion of deposit insurance. It is clear that many banks in Finland have experienced low interest margins compared to neighboring countries. This is mainly due to stiff competition. The government needs to establish structures to oversea international regulatory changes. This can be well achieved by ensuring cost efficiency. Households and financial firms have to be cautious when tasking risk activities to avoid loses.

 Another measure which is necessary in restoring the economy of Finland is the streamlining of financial management. There is need all banks to follow a well structured platform of leadership with the involvement of external forces. According to the IMF report, Finland has to cooperate with foreign countries in ensuring proper running of financial institutions. This can only be achieved through intensive supervision and coordination of various systems. With the hope of regaining the economic status of Finland, the implementation of the fiscal policy is quite crucial. Although the economy of Finland has enjoyed continuous stability, its weakest point emanated from the contraction of the economy in the year 2009 (Finland—2010 Article IV). Above all, Finnish authority has to appreciate the hope of regaining a better economy. The government should also address the question of the aging population and productivity drop which is threatening effective competition. With all these measures, there is every sign of growth for the economy of Finland.

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