Conclusion.

Finland is a republic which became independent in 1917. The head of state is the president. Ultimate political power is vested in the 200-member unicameral parliament. Fighting between Finnish and Russian forces resumes in the campaign known as the Continuation War. A massive offensive by Soviet forces in summer 1944 forces the Finns to sue for peace. Finland has a highly industrialized, largely free-market economy with per capita output roughly that of Austria, Belgium, the Netherlands, and Sweden. Trade is important with exports accounting for over one third of GDP in recent years. . However, the world slowdown hit exports and domestic demand hard in 2009, with Finland experiencing one of the deepest contractions in the euro zone. A recovery of exports, domestic trade, and household consumption stimulated economic growth in 2010. The recession left a deep mark on general government finances and the debt ratio, turning previously strong budget surpluses into deficits. Despite good growth prospects, general government finances will remain in deficit during the next few years. Agriculture represents less than 3% of the current Finnish GNP and employees less than 5% of the population. Because of the unfavorable climate, agricultural development is limited to the maintainace of a certain level of self-sufficiency in basic products. Forestry is traditionally well-developed: Finland exports a rich variety of products rending from simple wooden products to high-tech tags and labels and including paper, cardboard, packaging etc. Other key industrial sectors are metal production, mechanical engineering and electronic goods. Finland is one of the countries in the euro zone which has been hit the hardest by the crisis, due to a collapse of exports. After shrinking by 8% In 2009, the economy rebounded in 2010, with an estimated growth of 2.4%. Its GDP being among the highest in the world, Finland offers a high living standard. The distribution of wealth is fair, however, social inequalities have risen in the recent years. Affected by the crisis, the unemployment rate has also increased considerably, reaching around 9% today. The Finnish electronics and electrotechnics industry relies on heavy investment in R&D, and has been accelerated by the liberalization of global markets. For several years the number of

fixed telephone subscriber lines has been declining in Finland. Currently there are slightly over 1.9 million. Finland has an abundance of minerals, but many large mines have closed down, and most raw materials are now imported. Forest products have been the major export industry in the past, but diversification and growth of the economy has reduced its share. In the 1970s, the pulp and paper industry accounted for half of Finnish exports. The chemical industry is one of the Finland's largest industrial sectors with its roots in tar making in the 17th century. Finlands economic success requires the further removal of barriers to export and investment and an open import policy that promotes competition. The value of Finland's export in 2008 was 65.5 billion euro, which corresponds almost exactly to the level of the previous year. The boom of the first half of the year ended in a tumble in November-December, when export was clearly down as compared with 2007. Imports too fell towards the end of the year under review, but its value was nevertheless 4 % up on the year before, totaling 62.1 billion euro.