Economy
Since World War II Finland has developed into a modern industrial nation with a stable economy and a high standard of living. Abundant timber and substantial hydroelectric power are among the resources that have promoted industrial growth. Finland must import most of its mineral fuels and raw materials.
In general, the economy is based on a free market and on private ownership of industry. The government operates public utilities, public transportation and communication facilities, and some manufacturing and commercial enterprises. Most of Finland's trade is with Germany, Sweden, Great Britain, and other European nations.
| Economic production in Finland | |||||||
| Economic activities | % of GDP produced | Number of workers | % of all workers | ||||
| Community, government, & personal services | 25 | 767,000 | 33 | ||||
| Manufacturing | 23 | 444,000 | 19 | Finance, insurance, real estate, & business services | 18 | 313,000 | 13 |
| Trade, restaurants, & hotels | 12 | 363,000 | 15 | ||||
| Transportation & communication | 11 | 173,000 | 7 | ||||
| Construction | 5 | 151,000 | 6 | ||||
| Agriculture, forestry, & fishing | 3 | 120,000 | 5 | ||||
| Utilities | 2 | 20,000 | 1 | ||||
| Mining | 5,000 | ||||||
| Total | 100 | 2,356,000 | 100 | ||||
About 70 per cent of Finland is forested. Lumbering and the processing of wood are the mainstays of the economy. Forty per cent of Finland's exports are forest products. The government has implemented tree planting programs that have sustained the country's growing stock.
Manufacturing accounts for about a fifth of the gross domestic product. Products made from wood include pulp, paper, newsprint, plywood, veneer, and cardboard. Among leading metal products are farm machinery and tools, machines for the woodworking and paper industries, ships, locomotives, railway cars, engines, motors, and cable. Goods produced mainly for the home market include processed foods, textiles, clothing, leather and rubber goods, furniture, chemicals, and glass, clay, and stone products.
Though hampered by the small amount of cultivable land (only 3 per cent of the total) and by the rigorous climate, agriculture is important to the economy. It is highly mechanized and efficient and engages about 7 per cent of the labor force. Most farms are privately owned and are small.
Farming is largely devoted to raising livestock, especially dairy and beef cattle, hogs, and chickens. Among the chief crops are barley, oats, wheat, potatoes, and sugar beets. Some Finnish farm products are produced through farmers' cooperatives similar to those in the neighboring Scandinavian countries.
Mining is a relatively small sector of Finland's economy, and most of the minerals produced are used domestically. They include copper, gold, and zinc.
Finland's fishing industry produces primarily for the domestic market. Atlantic herring is by far the most important catch.
Motor vehicles provide the principal means of transportation; the roads are located mainly in the south. Almost all of Finland's railways are state-owned and are also located mainly in the south. Lakes and rivers, icebound during the long winters, provide inland waterways of some 4,100 miles (6,600 km). The Saimaa Canal links Lake Saimaa with the Gulf of Finland by way of Vyborg, in Russia. The only international airport is at Helsinki. Helsinki and Kotka, both on the Gulf of Finland, are the chief ocean ports.
