Contribution of forest sector to gross domestic
product (6.2)
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| Plywood industry has a history of over one hundred years. Finland
is the biggest producer of plywood and veneer sheets in EU. |
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| The main part of the Finnish forest chemical industry production is
exported, consisting mainly of paper and paper board. |
The contribution of the forest sector to the gross domestic product
GDP33 reflects the importance of the sector for the national
economy. The contribution can be used in regional analysis
to evaluate the significance of the forest sector as a source of
employment in rural areas and a factor in economic development.
In 2010, Finland’s national economy continued to rise from the 2008–2009 recession and the Finnish GDP at
market prices was EUR 180 billion. The value added (gross at
current prices) was EUR 157 billion, of which forestry accounted
for 1.9%, the wood-products industry for 0.8%, and the pulp
and paper industry for 2%.
The absolute value and value added of the output of the forest
industry have been declining in recent decades, and correspondingly
the contribution of the forest industry to the national
economy has been decreasing since the early 1980s. The decline
became particularly sharp in the 2000s due to weak growth in
the forest sector but also to the poor profitability of the pulp and paper industry, which has discouraged new investments in
the sector in Finland. The forest sector has also an indirect effect
on other industries, such as transport and mechanical industry.
In addition to direct added value, the forest sector contributes
to the national economy through multiplier effects.
The contribution of the forest sector to the GDP varies by region.
Regions with a high concentration of forest industry are southeastern
and central Finland, Lapland and Kainuu. The contribu
tion of forestry to the economy it the greatest in Kainuu, South
Savo and Lapland. The high regional differences in the contribution
to the GDP are mainly due to high concentration of pulp
and paper industry, and the changes in these figures are usually
small. However, the ongoing upheaval in the forest industry will
change the industry’s contribution to the GDP notably.
Figure 6.2a. Value added in the forest sector and its share in gross domestic product (GDP), 1975–2010.
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Figure 6.2b. Annual changes in the total GDP and forest
sector’s contribution to change, 1976–2010.
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Figure 6.2c. The share of forest sector in the total regional GDP by regional districts of the Finnish Forestry Centre, 2008. |
Links
33 Gross Domestic Product (GDP) is the sum of the added value of the goods
and services produced in the national economy. In addition to production for
the market, GDP also includes products and services which are not valued on
the market (e.g. services produces by the State, municipalities and the Social
Insurance Institution). GDP is presented by industry sectors. |
