Finsko
A frontrunner in digitalization. Home to Nokia. The "Land of a Thousand Lakes", which shares its eastern border with Russia.
Total area: 338,145 sq km (roughly the size of Montana)
Population: 5.6 million
Government type: Parliamentary Republic
Administrative division: 19 regions (called “maakunta”)
Capital + other major cities:Helsinki (674,500) + Espoo (314,000), Tampere (255,000), Vantaa (247,000), Oulu (215,000)
Currency: Euro
Languages: Finnish (official) 85.9%, Swedish (official) 5.2%, Russian 1.7%, other 7.2% (2022 est.)
Ethnicity: Finnish (91%), Swedish, Russian, Estonian, Romani, Sami
Religion: Lutheran 66.6%, Greek Orthodox 1.1%, other 1.7%, none 30.6% (2022 est.)
President: (Mr.) Alexander STUBB (since 1 March 2024)
Prime Minister: (Mr.) Petteri ORPO (since 20 June 2023)
Date of EU accession: 1995
KEY FEATURES
- Water makes up 10% of the land area (over 180,000 lakes)
- Forests cover two-thirds of the land
- High-quality education system, consistently ranking among the best in the world
- The only Nordic country that uses Euro
- New NATO Member since 2023
- The first country in the world to launch a permanent nuclear waste repository
MACROECONOMIC OVERVIEW
Finland is viewed as a stable economy with a strong emphasis on sustainability, digitization, innovation, and green transition. In 2023, Finland’s GDP experienced a slight contraction, reflecting broader European economic trends influenced by high inflation and geopolitical uncertainties. The forecast for the upcoming years indicates moderate growth. Government debt stands at 70% of GDP, which is relatively high compared to other Nordic countries and exceeds the Maastricht criteria. The government plans to increase taxes and cut expenditures that should consolidate public finances.
The country maintains a robust welfare state with high levels of public spending and taxation, which supports extensive social services and infrastructure. While unemployment rates have remained stable, the country faces challenges in the labor market due to a shrinking working-age population and structural unemployment. The country continues to invest significantly in education, research, and development to drive future growth.
Selected economic indicators, Finland, 2017 - 2023
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| GDP |
|
|
|
|
|
|
|
|
| Real GDP growth |
%
|
3.2 | 1.1 | 1.2 | -2.4 | 2.8 | 1.3 | -1.0 |
| GDP at current prices |
€ bn
|
226.3 | 233.4 | 239.8 | 238 | 250.6 | 267.6 | 277.6 |
| Foreign trade |
|
|||||||
| Exports |
€ bn
|
84.9 | 89.8 | 95.6 | 85.1 | 98.9 | 121.5 | 113.7 |
| Imports |
€ bn
|
84.8 | 92.7 | 95.2 | 85 | 98.8 | 127.9 | 114.8 |
| Balance |
€ bn
|
0.1 | -2.9 | 0.4 | 0.1 | 0.1 | -6.4 | -1.1 |
| Prices |
|
|
|
|
|
|
|
|
| CPI – average inflation rate |
%
|
0.8 | 1.2 | 1.1 | 0.4 | 2.1 | 7.2 | 4.3 |
| PPI – industry – average |
%
|
2.7 | 4.0 | 0.9 | -4.3 | 12.7 | 23.7 | -2.8 |
| Employment |
|
|||||||
| Unemployment rate |
%
|
8.7 | 7.5 | 6.8 | 7.7 | 7.7 | 6.8 | 7.2 |
| Average monthly gross wage |
€
|
3,396 | 3,455 | 3,532 | 3,595 | 3,685 | 3,790 | 3,926 |
Source: Statistics Finland, IMF, OECD, World Bank, Eurostat, ECB, 2017-2023
* For the current exchange rate, please see www.xe.com
KEY SECTORS
Finland is a free-market economy with a strong focus on innovation and advanced technologies. The services sector accounts for 70.4% of GDP, while industry contributes 26.8% and the agricultural sector makes up 2.8%. Given the harsh climatic conditions and short growing season, the profitability of the agricultural sector is low.
Shipbuilding
Finland is renowned for its shipbuilding industry. Companies like Meyer Turku are recognized for constructing advanced cruise ships and icebreakers. In fact, 80% of the world’s icebreakers have been designed in Finland and 60% are built by local shipyards.
Chemical industry
The chemical industry in Finland produces a wide range of products including chemicals and chemical products, oil refining, pharmaceuticals, plastics and rubber products, paints and coatings, detergents, and cosmetics. This sector employs 34,600 people directly and contributes approximately 19% to Finland's industrial output and exports.
Forestry and Paper industry
Forestry has historically been a cornerstone of Finland's economy and continues to play a vital role. Finland is a leading European producer in the pulp and paper industry, spearheaded by companies such as UPM-Kymmene and Stora Enso. With the decline in the printing paper market, the companies are shifting their product portfolios towards production of cardboard, packaging material and tissue paper as well as exploring and investing in innovative products like biomaterials and textile fibers.
Technologies
Finland ranks first in the EU’s Digital Economy and Society Index, reflecting its high level of digitization. The country has a substantial workforce of ICT specialists, exceeding the EU average. Finland is home to Nokia, once the world's largest mobile phone manufacturer, which continues to be a key player in 5G technology and network solutions. Additionally, Finland's gaming industry is flourishing, with globally renowned companies such as Supercell (creator of Clash of Clans) and Rovio (creator of Angry Birds). Over 335,000 Finns are employed in technology companies.
EXPORTS & IMPORTS
Compared to its Nordic neighbors, Finland is less export-oriented. The GDP-to-export ratio is only 41%, and the country has experienced a negative external trade balance in recent years. Key export industries include machinery and equipment, paper and pulp products, and basic metal products.
2023 export and import data:
Main import partners:
Germany – 13.5%
Sweden – 11.3%
China – 9%
Norway – 7.7%
USA – 5.4%
Main export partners:
USA – 11%
Sweden – 10.5%
Germany – 10.4%
Netherlands – 8%
China – 4.5%
Estonia – 3.6%
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