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State of Finland's Forests 2012: Finnish Forests in
European context demonstrated with selected indicators

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Contribution of forest sector to gross domestic product (GDP)

The share of forest sector in the total regional GDP by forestry centre, 2008.

 

The contribution of forestry and the manufacturing of wood and paper products to GDP indicates the forest sector’s macroeconomic importance. It can also be used for the assessment of how forest management contributes to overall sustainable development, more specifically in regional analysis to evaluate the significance of the forest sector as a source of employment in rural areas and development, and whether this contribution is sustainable.

Forest activities, wood processing and the pulp and paper industry combined contribute one percent to GDP in Europe as a whole, but the significance varies considerable among the countries. The contribution of the forest sector to GDP is decreasing as other sectors of the economy grow faster. Europe’s pulp and paper industry has experienced a steep decline over the past decade.

In 2010 the forest sector contributes about 4,8% of Finland’s GDP. Regionally, however, the percentage may be as high as 10%, for instance in South-Eastern and Eastern Finland and in Kainuu region. The economic recession of 2008–2009 caused a reduction of nearly 20% in production capacity in the pulp and paper industries, and jobs were lost in the forest industry in Finland. In 2009, the year of economic recession, the total contribution of the forest sector to the GDP was EUR 6 billion.

 

Contribution of forest sector to GDP, 2010.

  Updated: 21.03.2012 /MLier |  Photo: Erkki Oksanen, Metla, unless otherwise stated | Copyright Metla | Feedback