Finland - Market OverviewFinland-Market Overview
Finland, an EU member since 1995, has redefined itself from a quiet agricultural based economy to a trend setting, global center for technology and design. The country is highly integrated into the global economy with international trade accounting for a third of GDP. Finland’s commercial clout far exceeds its modest population of 5.5 million. The IMF estimates Finland’s GDP is about $240 billion with nominal per capita GDP of $43,000 (slightly higher than Canada or German). It is the only Nordic country that uses the Euro.
Finland routinely ranks at the very top of international surveys on education, quality of life, competitiveness and transparency. It sits at the epicenter of Europe’s “New North” – a unique intersection of geography, infrastructure, education, good governance, and high-technology industry. Helsinki, the second most northern capital in the world, has easy connections by rail, sea and air to Tallinn, St. Petersburg and Stockholm.
Finland shares a 833-mile long border and a complicated history with Russia. Despite Russia’s occupation of the Crimea region of Ukraine and sanctions and counter-sanctions affecting bilateral trade, Finland maintains an important commercial relationship with its larger, more populous neighbor. Many Finnish companies have successful longstanding business operations in Russia.
Currently, the United States represents the third largest market for Finnish exports and Finland’s seventh largest source of imports. Two-way merchandise trade between the U.S. and Finland was up slightly at close to $6.2 billion in 2016, chiefly computer equipment and electronics, transportation equipment, chemicals, forestry products and machinery. U.S. goods exports to Finland totaled $1.57 billion and Finnish goods exports to the U.S. totaled . $4.57 billion the same year. U.S. service exports to Finland were estimated at $1.8 billion with Finnish service exports to the U.S. reaching $2.1 billion in 2016.
The European Union makes up more than 60% of Finland’s total trade. The largest trade flows are with Germany and Sweden. Finland’s key export sectors are transportation, electronics, forestry, machinery and chemicals. Trade policy is managed by the European Union, where trade dependent Finland has traditionally been an advocate for free trade policies.
Finland Trade Development and Promotion