Finland, with a population of 5,556,106, is ranked 112th in the world, just behind the Central African Republic. Located in Northern Europe, it covers a total area of 338,470 square kilometers, ranking 64th globally, just below the Republic of Congo.
Finland’s economic position in 2022 is stable, with a GDP of $282.65 billion USD, ranking 46th globally. It is closely behind the Czech Republic, which has a GDP of $290.57 billion USD. Finland’s GDP per capita is $50,871.93, placing it 21st worldwide.
It lags behind Austria, which has a GDP per capita of $52,084.68. Despite facing challenges, Finland’s economy remains competitive and continues to show resilience in the global market.
What are the economic activities of Finland?
- Primary activities: 2.7% of GDP.
- Secondary activities: 28.2% of GDP.
- Tertiary activities: 69.1% of GDP.
Primary Sector of Finland
Finland’s primary sector, particularly its agricultural activities, thrives due to the favorable climate and abundant natural resources. With 7.46% of the land dedicated to agriculture, the country produces a variety of crops and animal products. The main agricultural products include milk, barley, oats, wheat, potatoes, sugar beets, pork, chicken, peas, and beef.
Despite contributing 2.7% to the GDP, agriculture plays a significant role in Finland’s economy, providing a diverse range of products and sustaining rural communities. The sector’s variety and quality of products highlight its importance in ensuring food security and supporting the country’s agricultural industry.
The country’s varied geology provides abundant natural resources such as timber, iron ore, copper, lead, zinc, chromite, nickel, gold, silver, and limestone. These resources drive the economy through forestry, mining, and metal production, contributing significantly to the primary sector’s growth and development.
Finland’s gas production, though modest at 8 million m³ in 2020, plays a role in diversifying the country’s economic activities.
Secondary Sector of Finland
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials into finished products for consumption. In Finland, main industrial products include metals, electronics, machinery, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, and clothing.
Manufactures play a crucial role in Finland’s total exports, accounting for 65.95% in 2023. They drive the economy and contribute significantly to the country’s trade balance and overall economic growth.
Tertiary sector of Finland
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Finland encompasses a wide range of services where knowledge and time are utilized to enhance productivity and meet needs. This sector includes intangible goods like advice, attention, and expertise, catering to both consumers and businesses. The main tertiary activities in Finland are healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, transportation and logistics, and media production and distribution.
In particular, Finland’s economy relies heavily on tourism, contributing significantly to its GDP. With 3,290,000 annual arrivals, accounting for 0.5921 of its population, the industry thrives. Helsinki, with its unique blend of modern and historic architecture, and the breathtaking natural landscapes of Lapland, known for its Northern Lights, are among the country’s most popular destinations.
Another example of tertiary economic activity is the mobile cellular sector, boasting over 7 million subscriptions, which fosters technological growth by enhancing connectivity and supporting digital innovation across industries.
Military Activities and Economic Sectors of Finland
The military is a good example of how different economic activities work together. In Finland, the primary sector helps by providing resources for military use. The secondary sector focuses on making military equipment. The tertiary sector includes services like training and support for soldiers. The quaternary sector involves research and development for new technologies, while the quinary sector deals with high-level decisions and strategies for defense.
In 2023, Finland’s military expenditure was $7.348 billion, which is 1.72% of its GDP. The active military force has 23,800 personnel, giving a ratio of 52.7 active military members for every 1,000 people in the country.
Biggest company in Finland
Which is the biggest company in Finland? It’s Nordea Bank, a leading financial institution in the banking industry. With a market value of approximately 40.26 billion USD, Nordea plays a crucial role in the tertiary economic sector. The bank was founded in 2000, serving millions of customers across the Nordic region.
International Trade of Finland
Import Activities of Finland
Finland’s high import activities, accounting for 47.73% of GDP, are crucial for meeting domestic demand and fostering economic growth.
Finland’s key import activities include crude and refined petroleum, cars, garments, and electricity. Major import partners are Sweden, Germany, China, Norway, and the Netherlands.
Exports Activities of Finland
Export activities in Finland are of high importance, accounting for 45.34% of GDP in 2023. Total exports reached $82.4 billion, driving economic growth and strengthening the country’s position in the global market.
Finland’s export activities are diverse, with key partners like Germany, the US, Sweden, Netherlands, and China. Major exports include paper, refined petroleum, steel, wood pulp, and wood.
Finland economy challenges in 2024
In 2024, Finland faces challenges emerging from recession due to weak demand and lower investment. Labor market reforms are underway to address structural issues in its high-income, export-based economy.
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