Economic context

Often cited as a model of economic performance, of success in terms of competitiveness and innovation, Finland, however, is struggling to recover from the global financial crisis and the crisis in the euro area. Highly vulnerable to the international situation, Finland has also suffered from the sanctions of the European Union against Russia. After three years of economic contraction (2012-2014) followed by a slight recovery, Finnish growth stood at 2.8% of GDP in 2017, thanks in particular to a strong increase in investment, household consumption and net exports.

Finland's GDP per capita is among the highest in the world, allowing the country to offer a high standard of living. The distribution of wealth is relatively equitable, despite a rise in social inequalities in recent years. Finland is nevertheless the European country most affected by the aging of its population. The reduction in the workforce affects public finances significantly. Therefore, since the beginning of 2017 Finland has been testing a minimum income system for the unemployed, whereby the government financially assists citizens during their job search period.

Agriculture accounts for 2.7% of current Finnish GDP and employs around 4.2% of the population. Due to the adverse climate, agricultural development is limited to maintaining a certain level of self-sufficiency in commodities. Cereal production dominates, largely leading dairy production and livestock. Finland's accession to the European Union has further accelerated the restructuring and contraction of the agricultural sector. Agriculture contributes 27.1% of GDP and employs about 22% of the population. The forestry industry is a traditionally well-developed sector in Finland, and the country exports a rich variety of goods ranging from simple wood products to high-tech labels, paper, cardboard and packaging. Other key industrial sectors are metal production, mechanics and electronics. Finland also specializes in the export of information and communication technologies: although Nokia has lost its leading position in the manufacture of mobile phones, it retains a telecommunications-based business and patents, which account for around 23 billion USD a year. The tertiary sector employs nearly three quarters of the population (73.8%) and accounts for 70.2% of GDP. It also generates the largest number of new businesses.