Finland Overview

The economic activity slackened in 2005 due to a labor strife which affected the exportations. GDP growth was 3.7% in 2004 bur only 1.8% in 2005. The IFM forecasts a 3.2% growth in 2006. Finland keeps its place as the most competitive country in the world, before the United States and according to Davos' economic Forum 2004-2005 classification. Finland's labour cost is the fifth lowest in the whole European Union and inflation is reduced (1% in 2005). The economy's two black points are the population ageing (will creat a shortage in the workforce) and the high unemployment rate (8.2% in 2005).

Natural resources are restricted in Finland. Numerous crops can't be grown because of harsh climatic conditions, so breeding represents the main agricultural activity. As a consequence, Finland has to import the major part of its foodstuffs, as the country is not able to meet the demand. Forests cover more than two-thirds of the territory and wood, pulp and paper industries are very developed and represent Finland's exports basis. Telecommunications are the main Finnish industrial sector, especially with Nokia, world leader of mobile telephony, providing 20% of the country's exports. Biotechnology is also a very dynamic sector, as well as tourism, which is in a full swing, especially in Lapland.

Due to its wide opening up, Finland's economy is submitted to the world economic revival, especially to telecommunications revival which account for 28% of its exports. Its three largest export partners are Germany, Russia and Sweden.
Finland's three largest import partners are Germany, Russia and Sweden. Finland mainly imports electronic components, machinery, hydrocarbons and capital goods.