Finland or the Republic of Finland has a mixed economy which is highly industrialized. The country located in the northern Europe has rich natural resources like gold, silver copper, timber and limestone. The country also has deposits of iron, lead, zinc, chromium and copper across the country. Service, which is the largest economic sector of the country, forms more than 67 percent of the total and the next sector, manufacturing accounts, for more than 30 percent of the economy of Finland.
Finland has over 2.68 million workers or labor force with unemployment rate being 8.5 percent of it in the year 2009. Most of the people in Finland, almost 32 percent are employed in public services, 8 % are employed in industry, and about 30% are employed in the finance, banking, service sector and commerce field. The remaining of the labor force works in the field of construction, transport and communication with least number of people being employed in agriculture and forestry.
Finland has an extreme climate and very short growing seasons which are most usually challenged by frost, and the summer month may sometimes face drought condition which makes it unsuitable for agriculture. The farmers in the country have tried to overcome these unsuitable and unforeseen climatic conditions by using frost free varieties and quick ripening varieties of crops. In spite of these geographical and climatic conditions, Finland produces more of agricultural goods than does any other European nations.
Finland has vast land under forest which has made the nation one of the major wood producers and exporter in Europe. Conservation of the forest land and its recreation was promoted by the Finnish government so as to increase the forest harvest each year, and that too on a three percent per year basis.
Though Finland has comparatively large deposits of a number of metals, due to the closing of most of the mines, at present the country mainly depends on the import of these materials from other countries. Finland now mainly concentrates on producing finished products out of the imported metals and products like metal pipes and steel roofing are manufactured which are then exported to the external market. The value added processing and manufacturing of the metals has provided a share of the country's GDP lately.
The modernization and the globalization of Finland have lead to the growth of tourist and related income towards the country's economy. The gross income from the tourism sector was €6.7 billion in 2008 which came from four million foreign tourists who visited the nation that year. The blessed nature and its beauty, the green forest and the hills and lakes make the country a favorite among the foreign tourists. The UNISCO World Heritage Site is one of the major tourist attractions in this nation, which is also considered as the home of Santa Clause.
The nation has a very well established trading economy which is supported by the open markets for trade and the industrialization in the country. The trade provides about 33 percent of the country's annual GDP.
The export of Finland for the year 2009 was estimated to be $ 57.89 billion which was a forty percent decrease when compared with the year 2008. The decrease in the export can be related to the worldwide recession but the nation is trying to pick up after the fall in trade and has moved without much effect during the recession period.
In terms of export volume, Finland ranks among the first 45 in the world. High-tech gadgets like mobile phones; metals, timber, machineries, paper, chemical and optical equipments are some of the major export items in the country; of this, electronic equipments form 23.3% of the export and chemicals & machineries come next.
The import of Finland economy dropped to a 45.4 billion in 2009 from more than 90 billion in the last year. The country which is ranked the 43rd country in account for its import volume, imports goods like foodstuffs, petroleum, iron, steel, chemicals and fabrics. Electric and electronic products are the major imported items of the country and chemicals products make up 16.5 % of the import.
Russia which takes up 11 percent of the total export from the country is the major export partner of Finland. Sweden, Germany, United States and UK are other countries which provide market for Finland goods.
The majority of the import of raw materials and other consumer based commodities comes from Russia (16.2 %). Another 35.4 percent of import comes from the countries like Netherland, Germany and Sweden taken together. The remaining comes from country like China, US, and UK.