The economy of Finland is a highly industrialized, mixed economy with a per capita output similar to that of other western European economies such as France, Germany and the United Kingdom. Finland is highly integrated in the global economy, and international trade is a third of GDP. The European Union makes 60 percent of the total trade. The largest trade flows are with Germany, Russia, Sweden, the United Kingdom, the United States, Netherlands and China.
The following tables and chart will tell the change details in last 5-10 years:
Finland Distribution of workforce from the last 5 years:
Finland Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Finland GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Finland’s economy. It employs almost 3.61% of the total workforce and contributed almost 2.45% in GDP.
In 2019 imports of agricultural and food products totaled $7.2 billion and accounted for an estimated 10 percent of the value of all imports into Finland. Over 40 percent came from the Netherlands, Sweden and Germany. The United States, with an import value of $65.3 million, was the fourth largest non-EU supplier (after Russia, Norway and Brazil).
Of the surface area, 70% is covered by forest and 10% is lakes. About 8% of the total surface area is agricultural land. Agricultural production is practiced on about 2.3 million hectares, and the main crops are cereals and grasses. The yield level varies a great deal in the different parts of the country. Most of the cereals are spring sown, with barley, oats and wheat as the most important spring sown species. Rye and also wheat are cultivated as winter cereals.
Agriculture Subsidy in Finland:
Finland gets 4% share of EU Common Agriculture Programme (CAP). This is very less proportion if we compare with France, Germany and Italy.
European Union Common Agriculture Policy:
The CAP is a common policy for all EU countries. It is managed and funded at European level from the resources of the EU’s budget. The CAP takes action with:
- Income support through direct payments ensures income stability, and remunerates farmers for environmentally friendly farming and delivering public goods not normally paid for by the markets, such as taking care of the countryside;
- Market measures to deal with difficult market situations such as a sudden drop in demand due to a health scare, or a fall in prices as a result of a temporary oversupply on the market;
- Rural development measures with national and regional programs to address the specific needs and challenges facing rural areas.
Industries plays an important part in the Finland’s economy. It accounts for 22.19% of the GDP and employed almost 23.93% of the workforce.
Major Industries in this Sector:
Paper: In 2020 Finland exported almost US $7.3 billion worth of papers which was almost 11.1% of total export in Finland. Of the value of paper exports, fine paper (-10%) and magazine paper (-4%) made up 82%. Almost one quarter of export value of fine paper came from Germany. The US accounted for the highest value of magazine paper exports. Germany accounted for the highest value of paperboard exports (share of 14%). In 2020, around 67 percent of Finnish paper and board was exported to Europe. Eurozone countries accounted for almost 40 percent of the total exports, and the largest share of 17 percent went to Germany. Around 11 percent of Finnish paper and board was exported to Asia, and 10 percent to the United States.
Automotive: In 2020 the Finland exported almost US $5 billion worth of vehicles which was almost 7% of total export in Finland. The Finnish motor industry consists mostly of manufacturers of tractors (Valtra, formerly Valmet tractor), forest machines (Ponsse), military vehicles ( Patria), trucks (Sisu Auto), buses and Valmet Automotive, a contract manufacturer, whose factory in Uusikaupunki produces Mercedes-Benz cars. While, in selling Toyota was the leading brand of passenger cars sold in Finland in the year 2020. The Japanese car manufacturer sold roughly 13.2 thousand passenger cars, whereas the runner-up car brand Volkswagen sold 9.9 thousand units.
Service sector is an important part in the Finland’s economy. It contributes almost 60.06% in the GDP and employed almost 74.21% of the total Finland’s workforce.
Major Industries in this Sector:
Finance: The value of Finnish exports totaled €96 billion, which was a growth of 7.2% from the previous year. The volume of exports grew by 7.5%. Total exports increased as a consequence of strong growth in service exports and ship orders supplied abroad. The Finnish banking system is dominated by three major groups of deposit banks together employing over 21,000 people in banking.
Tourism: Finland attracted over 6.8 million foreign tourists in 2018, with 53 percent coming from other European Union states. In 2017, the value added by tourism was about 4.6 billion euros, or 2.6% of the Finnish GDP, providing approximately 140,200 jobs. Finland is famous for its many lakes, nearly 200,000 of them. Finland is also known to have excellent water quality, and green deep woods and forests around the sea, rivers, and the waterways.
Top Companies in Finland:
|Company Name||Sector||Market Cap (USD)|
|Neste||Oil and Gas||$27.03B|
|UPM- Kymmene||Paper and Pulp||$18.58B|
|Stora Enso||Paper and Pulp||$12.36B|