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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.”

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