• Analysis and Studies
• Finland: a look at the market

Finland is a country located in Northern Europe that achieved full independence in 1917. During World War II, Finland managed to preserve its independence by cooperating with Germany and successfully resisting invasions by the Soviet Union. Over the following decades, Finland underwent a remarkable transformation from an agricultural and forestry-based economy to a diverse and modern industrial economy. Today, Finland boasts one of the highest per capita incomes in Western Europe. In 1995, Finland became a member of the European Union (EU) and was the only Nordic country to adopt the euro currency when it was introduced in January 1999. Finland's contemporary welfare state is characterized by a strong emphasis on high-quality education, the promotion of equality, and a comprehensive national social welfare system. In response to Russia's invasion of Ukraine in 2022, Finland made the decision to join NATO, becoming the organization's 31st member in April 2023. This move further solidified Finland's commitment to regional security and defense cooperation.

A look at the market

Finland has a highly industrialized economy that is primarily export-oriented. As a member of the European Union (EU) and a user of the euro currency, Finland benefits from its integration into the European single market. The country has a relatively high per capita GDP, indicating a prosperous economy.

However, Finland also faces challenges in its labor market due to rigid labor laws. These laws impose higher regulatory burdens on businesses, potentially affecting labor market flexibility and competitiveness. The regulatory framework may hinder the ease of doing business and create additional administrative requirements for employers. Despite these challenges, Finland's overall economic performance remains strong, and the country continues to innovate and adapt to changing global trends in industries such as technology and sustainable development.

In 2021, Finland's global rankings were as follows: 43rd in terms of GDP (current US$), 43rd in total exports, 46th in total imports, and 14th in terms of GDP per capita (current US$). The primary exports of Finland include Refined Petroleum ($4.48B), Kaolin Coated Paper ($4.25B), Cars ($3.46B), Sawn Wood ($3.16B), and Large Flat-Rolled Stainless Steel ($3.14B). These exports are mainly directed towards Germany ($10.4B), Sweden ($7.85B), the United States ($6.27B), the Netherlands ($5.21B), and China ($4.84B).

In terms of imports, Finland's major inbound goods consist of Crude Petroleum ($3.84B), Cars ($3.53B), Refined Petroleum ($2.96B), Motor vehicles; parts and accessories (8701 to 8705) ($1.87B), and Broadcasting Equipment ($1.79B). The country primarily imports these goods from Germany ($13.4B), Sweden ($11.9B), Russia ($8.93B), China ($5.79B), and the Netherlands ($5.53B).

Additionally, it is worth noting that in 2021, Finland held the position of the world's largest exporter of Kaolin Coated Paper ($4.25B), Papermaking Machines ($1.08B), Precipitated Copper ($563M), and Vegetable Parchment ($403M).

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