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Finland’s prime minister, Sanna Marin, has lost her battle to stay in power after her centre-left Social Democratic party (SDP) was narrowly beaten into third place in a cliffhanger election by its conservative and far-right rivals.

With 99.4% of votes counted on Sunday, the right-wing National Coalition party was on course to secure 20.7% of the vote, with the populist, nation-first Finns party predicted to score 20.1%. Marin’s SDP was forecast to collect 19.9%.

Marin congratulated the election winners during her concession speech, but hailed an improvement in both her party’s vote share and its projected number of MPs. “It’s a really good achievement, even though I didn’t finish first today,” she told supporters in Helsinki.

“Democracy has spoken, the Finnish people have cast their vote, and the celebration of democracy is always a wonderful thing,” she added. “We have good reason to be happy about this result.”

Sanna Marin, Finland's prime minister, will no longer stay into power as her party lost the election last Sunday.