Finland

A

Agriculture

Climactic conditions and the lack of good soils greatly limit the amount of land available for cultivation. Nearly all land suitable for farming is found in the fertile coastal regions of the southwest. Only 7 percent of the total land area of Finland is under cultivation. The large majority of the farms are less than 20 hectares (49 acres) in size.

Dairy farming is the principal agricultural activity. Hay and other fodder crops are grown to feed dairy cattle, beef cattle, sheep, and other livestock. The principal food crops are wheat (grown mainly in the Ahvenanmaa archipelago), rye, barley, oats, potatoes, and sugar beets. In colder northern regions, the land is used mainly for grazing sheep and cattle.

B

Forestry and Fishing

Forests, which cover more than 70 percent of Finland, have long provided a major source of materials for Finland’s wood and wood products industries. The most productive and accessible forests lie in the central and southeastern parts of the country. A majority of the forest lands are owned by private individuals, rather than by large corporations or the government. Throughout much of Finland, timber is cut during the winter months, and in the spring it is floated down rivers and lakes to sawmills.

Fishing, although important for domestic consumption, accounts for a small share of foreign trade. More than one-third of the total catch typically comes from inland waters.

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C

Mining

Finland’s mineral resources are used mainly to supply the nation’s metalworking industry. Finland holds significant deposits of copper and produced 15,500 metric tons in 2004. Zinc production was 37,200 metric tons. Silver mines yielded 33 metric tons. Chromite, lead, nickel, and gold are also mined.

D

Manufacturing

The pulp, paper, and woodworking industries account for a significant share of the Finnish manufacturing output. Other manufactured goods include heavy machinery and transportation equipment, metals, engineering products (including computers, software, electronic components, and telecommunications equipment), printed goods, food products and beverages, textiles and clothing, chemicals, and glass and ceramics. The Finnish company Nokia is one of the world’s largest telecommunications manufacturer, producing mobile telephones, digital networking hardware, and other equipment.

E

Currency and Banking

The monetary unit of Finland is the single currency of the European Union (EU), the euro (0.80 euros equal U.S. $1; 2005 average). The euro was introduced on January 1, 1999, for electronic transfers and accounting purposes only, and Finland’s national currency, the markka, was used for other purposes. On January 1, 2002, euro-denominated coins and bills went into circulation, and the markka ceased to be legal tender.

As a participant in the single currency, Finland must follow economic policies established by the European Central Bank (ECB). The ECB is located in Frankfurt, Germany, and is responsible for all EU monetary policies, which include setting interest rates and regulating the money supply. On January 1, 1999, control over Finnish monetary policy was transferred from the Bank of Finland to the ECB. After the transfer, the Bank of Finland joined the national banks of the other EU countries that adopted the euro as part of the European System of Central Banks (ESCB).

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