Republic of Finland Economic Analysis, Economic Well-Being and U. S. Economy Contrast Ryan Green Technical College Abstract This paper contains research that identifies 10 key economic indicators of the Republic of Finland. The indicators described will be presented as follows: Gross Domestic Product (GAP), Per Capita GAP, GAP growth rate, GAP Composition by Sector, Labor Force, Labor force by Occupation, Population below Poverty Line, Unemployment Rate, Inflation Rate and Human Development Index Ranking. In addition to these indicators, the author will provide an idea of the general well-being f the economy with supporting rationale.
A contrast to the United States economy will also be described in the areas of Per Capita GAP, Unemployment Rate and Human Development Index. Note: Figures for Fenland’s Population below Poverty line are not available. However, an October 2013 report from Wyle. If states that Finland has the world’s lowest relative child poverty rate. Finland enjoys a highly industrialized, mixed-market economy. Finland is very competitive in manufacturing, primarily in the areas of wood, metals, engineering, telecommunications, and electronics industries.
Most notably are the areas of paper and pulp production and telecommunications. Fenland’s paper and pulp companies control roughly 3% of the world market and include 2 of the top 5 largest paper and pulp companies worldwide. Monika, based in Finland, is one of the world’s most recognized producers of mobile devices. GAP in Finland was $250. 1 billion USED in 2012 and has steadily increased since 1960. Fenland’s GAP for 2012 ranked 56th in the world with 0. 2% reduction in overall GAP from 2011. GAP per capita for 2012 was $37,000 USED ranking 37th in the world.
Per capita GAP like most other industrialized nations steadily increased until the Great Recession of 2008 then rebounded in 2010. The service sector makes up the largest portion of Fenland’s GAP contributing 70. 1% with industry at 27. 1% and agriculture at 2. 8%. In 2012 Fenland’s labor force was estimated at 2. 69 million ranking 80th among Economic Well-Being of Republic of Finland vs.. The U. S. Economy By ransack 28. 5%; commerce 21. 3%; industry 15. 5%; finance, insurance and business services 13. 3%; transport and communications 9. 9%; construction 7. ; agriculture and forestry 4. 4%. Finland has an unemployment rate comparable to most other industrialized nations at 7. 8% in 2012 ranking 87th in the world. Fenland’s inflation rate for 2012 was 3. 2% with a 5 year mean at a healthy 2. 2%. Finland has a very high Human Development Index ranking 21st in the world. Like other countries in the Nordic region they enjoy an above average life expectancy, 80. 1 years from birth in Finland. Education is highly prioritize with children attending school an average of 16. 9 years and a literacy rate at an impressive 99%.
I would rate Fenland’s economic well-being as above average. As with all other modern economies in the world there is concern with the weakness of the international economy. Fenland’s main industry concerns come in the form paper and technology. In a paper describing Fenland’s current economic condition Seeps Honoraria states, “The problems in the electronics industry have been related to one large company, Monika, which lost its technological advantage in mobile phones. Paper industry, in turn, suffers from the longer-term decline in demand for printing paper in Europe”.
Another concern that reflects a condition in the U. S. Economy is an ageing population. Seeps states, “Old-age dependency ratio will be very high by 2030. This is because of the specific features of the intense post-war baby boom”. In spite of these elements I would still rate their economic well-being as very good, as many of their concerns are reflective of many of the world economies. Also, with their very high Human Index Rating, particularly in education, they are adding to an already solid economic foundation. A 2013 report from Wyle. I states that, “Finland was ranked first relied in average scores on PISA tests of reading, math and science literacy’. While Finland enjoys many of the advantages that come along with a modern economy, they are different from our own. Per capita GAP for Fins is valued at $37,000 USED, while U. S. Per capita GAP is $50,700 USED. The numbers do not tell the whole story as Finland is a largely social state that provides many public services to its citizens through increased tax rates. Over the last 5 years income tax in Finland has averaged 50%, while in the U. S. It has averaged 35%.
Also, the cost of living seems to be greater than in the U. S. A gallon of gasoline in Finland is $8. 70 compared to $3. 70 in the U. S. Similarly, grocery and restaurant prices in Finland are 25% more expensive than here in the U. S. Unemployment rates in Finland and the U. S. Are relatively close, with both economies hovering around 8%. Considering the vast difference in size and type of economies, the U. S. Being a very large mostly free market and Finland being a smaller mixed, the deviations over a 5 year period are different, but both keep a mean close to 8%.