economic outlook and competitiveness of finnish industry simo pinomaa senior economist confederation...
TRANSCRIPT
Economic Outlook and Competitiveness of Finnish Industry
Simo PinomaaSenior Economist
Confederation of Finnish Industries EK
vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv2
Elinkeinoelämän keskusliitto
Finlands Näringsliv
Confederation of Finnish Industries
2 EK/Eng/shs11.2004
pp.kk.vvvv Tekijä
3
EK represents
• The entire private sector and companies of all sizes
• 35 branch associations
• About 16,000 member companies, of which 96% are SMEs
• Over 70% of Finland’s GDP
• Over 95% of Finland’s exports
• About 950,000 employees
pp.kk.vvvv Tekijä
4
EK activitiesEK activities
Regional Offices Regional Offices EK BrusselsEK Brussels
• Logistics• Energy• Environment
and Climate• Sustainable
Development
• Business Law• Competition• Information
Society• Trade Policy
and International Relations
• Economy• Taxation• Employment• Finance and
Welfare• Business
Cycles and Trends
• Competitive-ness
• Collective Bargaining
• Development of Labour Market
• Labour and Social law
• Statistics and Surveys
• Corporate Security
• Business Development
• Education, Training and Qualification Requirements
• Labour and Immigration
• Research and Technology
• Business Services and Financing
CommunicationsCommunications
BusinessInfrastructure
Business Environment
Economic Policy IndustrialRelations
Innovation Environment
and Competences
SME-Affairs SME-Affairs
OUTLINE
• Economic Structures• Macroeconomic Situation• Finnish Competitiveness
pp.kk.vvvv Tekijä
6
From Agriculture to ServicesEmployment by Sector, %
pp.kk.vvvv Tekijä
7
pp.kk.vvvv Tekijä
8
The Volume of Industrial Production Has Doubled
pp.kk.vvvv Tekijä
9
The Industrial Growth without Electronics
pp.kk.vvvv Tekijä
10
pp.kk.vvvv Tekijä
11
pp.kk.vvvv Tekijä
12
Finland: 3 Stages of Economic Development
pp.kk.vvvv Tekijä
13
R&D in Finland in 1985-2005
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
1985 1987 1989 1991 1993 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005
Public sector Universities Enterprises
Billion EUR
0,91,1
1,51,7 1,
8
2,2
2,93,3
3,9
4,44,6
Source: Statistics Finland
4,8
5,3
(estimate)
5,05,4
pp.kk.vvvv Tekijä
14
R&D Expenditure per Capita in 2003 PPP dollars
0 250 500 750 1000 1250
Czech Rep.Spain
New Zeald.Slovenia
ItalyIrelandKorea
AustraliaUK
SingaporeBelgium
Netherlds.FranceCanadaNorwayAustria
GermanyDenmark
JapanIcelandFinland
IsraelUSA
Sweden
pp.kk.vvvv Tekijä
15
Educational achievements: OECD Pisa –studyOECD average = 500, 15 year old students
440 460 480 500 520 540 560
Finland
Korea
Japan
Canada
Australia
New Zealand
Netherlands
Belgium
Sw itzerland
Czech Rep.
Sw eden
Math Reading Natural Sciences Problem Solving
pp.kk.vvvv Tekijä
16
The Crises of the ”Finnish Model”1991 – 1993 a collapse in employment
Will the Good Economic Performance Continue? - yes at least in the short run …
pp.kk.vvvv Tekijä
18
Source: European Commission, April 2007
pp.kk.vvvv Tekijä
19
pp.kk.vvvv Tekijä
20
pp.kk.vvvv Tekijä
21
pp.kk.vvvv Tekijä
22
… the growth has been balanced …
pp.kk.vvvv Tekijä
24
pp.kk.vvvv Tekijä
25
A Strong Current Account Surplus
pp.kk.vvvv Tekijä
26
… but in the long run?
pp.kk.vvvv Tekijä
28
DM 3605405-2006 Copyright © Tekes
Total ranking 2003-2006Total ranking 2003-2006
Sources: IMD, The World Competitiveness Yearbook 2006 andWEF, The Global Competitiveness Report 2005-2006
IMDTotal compe-
titiveness20062004 20032005
WEFGrowth
competitiveness
2005
WEFBusiness
competitiveness
221
124
145
177
2115
986
133
20
1123456789
10111213141528
FinlandFinlandUSASwedenDenmarkTaiwanSingaporeIcelandSwitzerlandNorwayAustraliaNetherlandsJapanGreat BritainCanadaGermanyHong Kong
1123456879
10121115161424
1123547
1086
1412
911151321
10101
145
18348
126
151721
726
2
Finland and Competitiveness
pp.kk.vvvv Tekijä
29
0
5
10
15
20
25
30
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Ranking of Finland in IMD Total Competiteveness Indicator
Lähde:IMD
Simo Pinomaa14.5.2005
Sources: IMD, The World Competitiveness Yearbook 2006
pp.kk.vvvv Tekijä
30
0
10
20
30
40
50
60
Source: Eurostat
EU-27 average 40,8 %
Total Tax Revenue as percentage of GDP EU-countries in 2005
pp.kk.vvvv Tekijä
31
0.841.04
2.333.29
5.095.48
6.046.82
10.9014.72
16.5017.47
19.1020.1220.41
20.7520.92
21.6423.88
24.2224.62
25.3825.70
26.1926.67
29.4131.17
0 5 10 15 20 25 30 35
India***China***Russia**
Brazil*Estonia
Czech RepublicPortugal
SingaporeSouth Korea*
SpainJapan
ItalyIreland
USAFrance
AustraliaCanada
United KingdomSweden
AustriaSwitzerland
BelgiumNetherlands
FinlandGermanyDenmark
Norway
Euro/hour
Labour costs in various countries 2006Industrial workers
*2005 **2004 ***2003Source: Confederation of Sw edish Enterprise, U.S. Department of Labor, Economist, Confederation of Finnish IndustriesData mainly refers to the blue-collar w orkers in manufacturing but in some countries to all employees.
Saukkonen
7.5.2007
pp.kk.vvvv Tekijä
32
3.9
3.5
3.1
2.4 2.4 2.5
5.6
4.2
3.8
3.1 3.1 3.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2001 2002 2003 2004 2005 2006*
%
Euro area Finland
Change of labour costs in Finland and euro area 2001 - 2006Private sector
Source: Eurostat (Hourly Labour Cost Index), Statistics Finland (Labour Cost Index)
Saukkonen
7.5.2007