The main articles are:
GDP
2023
1% reduction in GDP
At the end of 2023, Finland's GDP fell by about 1%. For comparison, a year earlier, an increase of 1.3% was recorded, and in 2021 the increase was 2.8%. Such data in mid-March 2024 was published by the country's Statistics Office.
It is noted that GDP per capita of Finland fell below the level of the financial crisis in 2008. The deficit of the public administration sector in 2023 grew to more than €7 billion. A year earlier, the deficit was estimated at €1.4 billion. The growth of the indicator was influenced by a decrease in value added tax charges, wage growth and other factors.
Despite the weak economy, employment remained at a fairly high level - about 73%. Unemployment began to rise, however, and job vacancies fell by half from the peak seen in late 2022.
In particular, the weak indicators of the housing construction sector have a negative impact on the Finnish economy. Previously, almost half of the new buildings in the greater Helsinki area were bought for rent. But real estate investors lost interest in this area, as interest rates rose against the background of the emerging macroeconomic situation and geopolitical tensions, and the number of vacancies increased. At the same time, the rent practically did not rise. Housing construction is falling at the same rate as it did during the 1990s recession.
Net exports of services in Finland, as noted, in 2023 decreased compared to the previous year. The fall is due to the slowing development of the telecommunications sector, as well as computer and information services. Overall, high inflation and rising interest rates are weighing on economic activity and demand.[1]
Industry's share of GDP
GDP contraction of 0.9% in Q3
In the third quarter of 2023, the Finnish economy contracted the most since the beginning of the Covid-19 pandemic, as falling demand for exported goods, as well as rising borrowing costs, put pressure on the economies of the Scandinavian countries. GDP shrank 0.9% from the previous quarter.
2022
Industry's share of GDP is less than 20%
GDP size forecast - $0.29 trillion
2021
GDP size - $0.3 trillion
Agriculture's share of GDP - 2.3%
Financial system
Key rate
Non-financial debt
2022: Aggregate non-financial debt 250% of GDP
National debt
2023: State debt - 75% of GDP or 210 billion euros
In 2023, the ratio of Finland's public debt to GDP increased by 2.3% and amounted to 75.8% at the end of the year. In general, for the EU countries, the ratio of public debt to GDP, on the contrary, decreased by 1.7% over the year to 81.7%.
In Finland, the ratio of public debt to GDP is the ninth largest among EU member states. In neighboring Sweden, the ratio of public debt to GDP at the end of the year was only 31.2%.
According to Eurostat, Finland's public debt increased to €210.5 billion by the end of 2023.
2017: State debt - 61% of GDP
Inflation
2022
Inflation in November - 8.3%
Inflation growth in September to 8.1%
In September 2022, inflation in Finland rose to 8.1% amid another round of growth in electricity and fuel prices.
Inflation in July - 7.8%
Investments
2023: Reduced foreign investment
Minerals
2022: Second place in the world in cobalt processing
Company bankruptcies
2023: Rise in bankruptcies to record 26 years after severing economic ties with Russia
The number of companies filing for bankruptcy in Finland in July 2023 increased to the maximum level over the past 26 years (224 companies were insolvent), which is a direct result of failed attempts to put pressure on Russia and break economic ties with it. According to statistics, the construction industry and other service enterprises account for the most bankrupt.
Labour market and unemployment
Main article: Labour market in Finland
Foreign trade
2023: Reduction in exports to Russia and Central Asia by 68.9% to €1.2 billion
The volume of Finnish exports to Russia and Central Asian countries decreased by 68.9% over the period from 2021 to 2023 and amounted to €1.2 billion in 2023. This became known in November 2024.
According to TASS Finland reports, it is one of the three countries European Union showing the most significant reduction in exports in the eastern direction. the Finnish Customs refers to the countries of Central Asia,,,, and Armenia. Georgia Kazakhstan Kyrgyzstan Turkmenistan Uzbekistan
 | Finnish companies have reduced their exports to the east significantly more than the average EU company, "said Olly-Pekka Penttilya, head of the Finnish customs statistics department. |  |
In 2021, exports from Finland to Russia and Central Asia reached €3.9 billion. In 2022, the figure decreased by 37.2% to €2.5 billion, and in 2023 a further drop of 50.5% was recorded.
Russian Ambassador Helsinki to Pavel Kuznetsov noted a decrease in the total trade turnover between the countries by almost six times - from €12 billion to €2 billion in two years. Russia has moved from Finland's top three trading partners to the second ten.
According to Eurostat, exports from the EU to Russia in two years decreased by 57%. The growth in supplies was recorded only in four countries of the union Bulgaria-,, and Latvia, Slovenia Croatia which increased exports to both Russia and Central Asia.
In Finland, there is a drop in GDP, an increase in public debt and a slowdown in investment activity. The number of bankruptcies of enterprises increased by 25% in 2023. The government is cutting spending on social programs, health and education.
Finland is showing lower economic recovery compared to its northern neighbors, which did not have such close economic ties with Russia.[2][3]
2022
Germany is the largest export destination
Trade deficit with China
Drop in direct supplies to Russia by 85% in January during the rise of exports to neighboring CIS countries by 270%
The export of Finnish goods to Russia in January amounted to 46.5 million euros, which is 85% less than a year earlier, while exports to Armenia, Kazakhstan, Uzbekistan and Kyrgyzstan increased by 270%, to 41.8 million, the statistics of Finnish customs.
Finnish companies lost €4 billion due to leaving Russia
The total losses of Finnish companies, whose shares are traded on the stock exchange in Helsinki, due to the reduction or closure of business in the Russian Federation against the background of the Russian special operation in Ukraine in 2022 amounted to about 4 billion euros. Among them are Fortum, YIT, Nokian Tyres and Finnair. Such data in early March 2023 cited the newspaper Helsingin Sanomat.
The biggest losses were suffered by the Finnish energy state company Fortum, which invested about €5 billion in cooperation with Russia. The company's losses are estimated at €1.7 billion, the company cannot sell its Russian assets. The company has become the only one in Finland whose losses are estimated at billions of euros.
Large losses from leaving the Russia publication also counted from the construction company (YIT €440 million) and tire manufacturer Nokian Tyres (€300 million). For many years, the plant in Russia and the cheap rate ruble have been competitive advantages for Nokian Tyres. Most of the tires for passenger cars were produced in Russia, the publication says. The basis of the profit of Nokian Tyres was the export of Russian-made tires to Western countries.
The main Finnish air carrier Finnair was also significantly affected by the imposition of sanctions against Russia. The airline, which has just begun to recover from the pandemic, suffered losses of €150 million in 2022. In addition, Finnair's activities are seriously affected by Russia's closure of airspace for its aircraft, which has complicated flights in the critical Asian direction for the company.
Several other large Finnish companies, including Kone, Nokia and Nordea, also reported large write-offs worth millions of euros in 2022 due to Russian business, Helsingin Sanomat reports.[4]
Deliveries to Russia through neighboring countries
Finland by the end of 2022 increased the volume of supplies to neighboring countries with Russia to €30 million per month. Their share (Armenia, Georgia, Kazakhstan and Kyrgyzstan) accounts for almost the entire growth in exports of Finnish companies. For example, Helsinki's supply to Kyrgyzstan increased by 800% in 2022. Analysts argue that most of the goods sold fall under the restrictive measures of Western countries.
The number of Finnish companies continuing to work with Russia has decreased by 85% to less than 100
The number of Finnish companies continuing to work with Russia decreased by 85% in 2022 and is less than 100 - Finland's customs. Sanctions against Russia have led to the fact that Finnish trade is almost completely - by 95% - carried out by sea.
Reduction in exports to Russia for 8 months by 29% to 1.55 billion euros
According to Finnish customs, against the background of EU sanctions due to the conflict in Ukraine, in August 2022, exports of goods to Russia collapsed by 70% compared to the same month last year, to 81.7 million euros. For 8 months, exports to the Russian Federation decreased by 29.5% to 1.55 billion euros. In the structure of exports to Russia in minus, almost all categories of goods failed - especially pulp, paper, cardboard and products from them, the export of which fell by 99% in August. The only position in which exports to Russia increased, and by 50% year-on-year, was copper matte.
2019: Computer Device Exports
Energy carriers
2022
Reduce gas consumption by nearly 60%
Gas consumption in the bloc from August 2022 to January 2023 was 19% below the average for the previous five years, according to data released by Eurostat. The largest drop occurred in Finland - consumption more than halved.
Rejection of pipeline gas from Russia and transition to LNG, mainly from Russia
In May 2022, Finland refused to switch to paying for gas from Russia in rubles and supplies through the pipeline were stopped. See Gasum for details.
Finland, having abandoned Russian pipeline gas, buys LNG from the Cryogas-Vysotsk plant, its load does not subside, Novatek reported in June 2022.
As the Russian trade representative in Finland noted, "for the period from January to September 2022, Finland imported LNG in the amount of 85 million euros, of which 75 million euros (88%) are of Russian origin."
The limited capacity of Finnish terminals, as well as high demand and record LNG prices in Europe, prevent Finns from refusing to import Russian energy resources.
2020: High dependence on gas from Russia
Power
Main article: Power of Finland
NPP
- Loviisa NPP is the 1st nuclear power plant in Finland, which by 2022 provides more than 10% of electricity in the country.
Transport
2021: Average train speed - 89.1 km/h
Automotive market
2021:93 thousand cars produced
Consumption
2023: Fish consumption is higher than meat consumption
2019
Pork is the most consumed type of meat
Beer consumption in liters per year per person
2018
Per capita tea consumption per kg per year
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Milk consumption in liters per year per person
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Agriculture
2021: Share of farmland - 7%
2019: Low use of pesticides in agriculture
Tourism
2023: In Finland, a shopping complex built for €35 million is sold for $70 thousand due to the outflow of tourists from Russia
The Zsar Outlet Village shopping complex, located in Finland near the border by Russia, was sold for 70 thousand euros, although 35 million euros were invested in its construction. The results of the auction became known at the end of November 2023. Read more here.
2019: More than 45% of the population went on tourist trips. Spain is the most popular country
2018: Tourism revenue
Alcohol market
Minimum age to purchase alcoholic beverages
R&D
2020: R&D spending - $7.2 billion
Food industry
2021: Cheese production - 15.1 kg per capita
Notes
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