The Finnish economy has made enormous strides since the severe recession of the early 1990s. Finland successfully joined the euro zone and has outperformed euro-area partners in terms of economic growth and public finance. Even under the difficult circumstances of the last few years, the Finnish economy has performed reasonably well--though the pace of activity has slowed considerably and remains subject to volatility. Finnish GDP growth slowed sharply from 5.1% in 2000 to 1.2% in 2001, largely as a result of a collapse in exports. The economy picked up slightly in 2002, when GDP growth amounted to 2.2% and hovered around 2.0% in 2003. In 2004, the government cut taxes and tempered inflation in order to incite private consumption to prompt a growth in GDP. This successfully raised GDP by 3.7%. However, growth was predicted to slow to 2.2% for 2005.

Unemployment has decreased significantly since 1994, although the 8.9% unemployment rate for 2004 remained above the EU average. A relatively inflexible labor market and high employer-paid social security taxes hamper growth in employment. However, the government expected unemployment to drop to 8.5% for 2005.

Exports of goods and services contribute 33% of Finland's GDP. Metals and engineering (including electronics) and timber (including pulp and paper) are Finland's main industries. The United States is Finland's most important trading partner outside of Europe. With a 4.7% share of imports in 2003, the United States was Finland's sixth-largest supplier after Germany, Russia, Sweden, the United Kingdom, and France. The total value of U.S. exports to Finland in 2003 was $2.1 billion. Major exports from the United States to Finland continue to be machinery, telecommunications equipment and parts, aircraft and aircraft parts, computers, peripherals and software, electronic components, chemicals, medical equipment, and some agricultural products. The primary competition for American companies comes from European suppliers, especially German, Swedish, and British. The main export items from Finland to the United States are ships and boats, paper and paperboard, refined petroleum products, telecommunications equipment and parts, and automobiles. In 2003, the United States was Finland's fourth-largest customer after Germany (11.8%) and Sweden (9.9%) with an export share of 8.1%, or $4.7 billion. However, trade is only part of the totality: the 10 biggest Finnish companies in the United States have a combined turnover that is three times the value of Finland's total exports to the United States. About 2% of the Finnish GDP comes from exports to the United States.

Except for timber and several minerals, Finland depends on imported raw materials, energy, and some components for its manufactured products. Farms tend to be small, but farmers own sizable timber stands that are harvested for supplementary income in winter. The country's main agricultural products are dairy, meat, and grains. Finland's EU accession has accelerated the process of restructuring and downsizing of this sector.