Finland Economic Outlook
A stable, export-driven economy:
Finland has a highly developed economy with a strong industrial base and a highly skilled workforce. The country’s economy is heavily reliant on exports, particularly in machinery, electronics, forestry, and chemicals. Finland is home to global technology and telecom giants like Nokia, as well as a world-class paper and timber industry. However, its trade dependence makes it vulnerable to external shocks, especially those affecting the EU and Nordic markets.
Aging population and labor market challenges:Finland faces demographic challenges, with one of the most rapidly aging populations in Europe. This has led to labor shortages in key industries, particularly healthcare and technology, while also increasing pressure on public finances. The government has sought to address this through policies encouraging higher birth rates, automation, and selective immigration, but structural reforms remain necessary.
Energy transition and economic risks:Finland has invested heavily in renewable energy and nuclear power to reduce reliance on fossil fuels. The country is a leader in clean energy technology, with innovations in biofuels and hydrogen production. However, Finland has been impacted by the broader European economic slowdown and the loss of trade ties with Russia, which was once a major market for Finnish exports.
Finland's economic forecasts:Finnish economic activity is expected to remain resilient due to a strong industrial base, innovation-driven policies, and robust public sector. However, long-term growth will be constrained by demographic headwinds.
Finland's Macroeconomic Analysis:
Nominal GDP of USD 296 billion in 2023.
Nominal GDP of USD 299 billion in 2024.
Nominal GDP of USD 299 billion in 2024.
GDP per capita of USD 53,311 compared to the global average of USD 10,589.
GDP per capita of USD 53,110 compared to the global average of USD 10,589.
GDP per capita of USD 53,464 compared to the global average of USD 10,589.
Average real GDP growth of 0.7% over the last decade.
Average real GDP growth of 0.8% over the last decade.
Average real GDP growth of 0.8% over the last decade.
Sector Analysis
In 2022, services accounted for 60.7% of overall GDP, manufacturing 15.0%, other industrial activity 21.8%, and agriculture 2.5%. Looking at GDP by expenditure, private consumption accounted for 52.5% of GDP in 2023, government consumption 25.2%, fixed investment 22.7%, and net exports -0.4%.International trade
In 2023, manufactured products made up 66.0% of total merchandise exports, mineral fuels 9.5%, food 2.8%, ores and metals 7.2% and agricultural raw materials 6.8%, with other categories accounting for 7.7% of the total. In the same period, manufactured products made up 64.1% of total merchandise imports, mineral fuels 14.2%, food 8.6%, ores and metals 6.7% and agricultural raw materials 1.5%, with other goods accounting for 4.9% of the total. Total exports were worth USD 83.30 billion in 2024, while total imports were USD 75.90 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 0.7% in the decade to 2023. To read more about GDP growth in Finland, go to our dedicated page.
Fiscal policy
Finland's fiscal deficit averaged 2.1% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 8.0% in the decade to 2024. For more information on Finland's unemployment click here.
Inflation
Inflation averaged 1.8% in the decade to 2024. Go to our Finland inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Finland monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Finland
A second release revealed that the economy stagnated in Q1 (Q4 2024: +0.2% qoq s.a.). Fiscal austerity was the main drag on growth as the government ramped up its efforts to contain the budget deficit. Still, firms front-loaded exports ahead of U.S. tariffs, real wages picked up pace and the central bank cut interest rates further, preventing a contraction. Shifting to Q2, our panel sees GDP growth returning; economic activity rose from Q1’s average in April, supporting this prediction. Household consumption likely remains a bright spot, with low inflation plus an income tax cut lifting consumer sentiment in April–May. Still, U.S. tariff hikes have depressed the outlook of trade and demand for top export petroleum. In other news, Finland recently pledged EUR 90 million of ammunition to Ukraine, financed with frozen Russian financial assets and boding well for industrial production.Finland Economic Forecasts
Projections out to 2034.49 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 20 expert analysts.
Want to get insight on the economic outlook for Finland in the coming years? FocusEconomics collects projections out to 2034 on 49 economic indicators for Finland from a panel of 20 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Finland economy. To download a sample report on the Finland's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.