Economic freedom score recent freedom trend

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144
2023 Index of Economic Freedom
MOSTLY FREE
8
11
ECONOMIC FREEDOM STATUS:
REGIONAL RANK: 
WORLD RANK: 
ECONOMIC FREEDOM SCORE
RECENT FREEDOM TREND
QUICK FACTS
0
50
60
70
80
100
HISTORICAL 
INDEX 
SCORE CHANGE
2018
2019
2020
2021
2022
2023
60
70
80
90
74.1
74.9
75.7
76.1
78.3
77.1
REGIONAL
AVERAGE
(EUROPE)
68.2
WORLD
AVERAGE
59.3
77.1
(SINCE 1996):
+13.4
2021 data unless otherwise noted. Data compiled as of September 2022
FINLAND
BACKGROUND:
Finland joined the European Union in 1995 and adopted the euro in 1999. Russia’s war 
against Ukraine led to a surge in public support for NATO membership, and Finland reversed decades of policy 
by applying for membership in May 2022. Prime Minister Sanna Marin of the Social Democratic Party heads a 
center-left coalition with the Centre Party, the Green League, the Left Alliance, and the Swedish People’s Party 
of Finland. President Sauli Niinistö of the National Coalition Party won a second term in 2018. The export-led 
economy is centered on manufacturing, principally in the wood, metals, telecommunications, and electron-
ics industries.
F
inland’s economic freedom score is 77.1, making its economy the 11th freest 
in the 2023 
Index
. Its score is 1.2 points lower than last year. Finland is 
ranked 8th out of 44 countries in the Europe region, and its overall score is well 
above the world and regional averages.
Finland’s economy is characterized by openness and transparency. The quality 
of the legal framework is among the world’s highest, and property rights are 
protected. The rule of law is respected, and tolerance of corruption is minimal. 
Finland has long benefited from open-market policies that support dynamic 
trade and investment.
POPULATION:
5.5 million
GDP (PPP):
$297.5 billion
3.3% growth in 2021
5-year compound 
annual growth 1.3%
$53,757 per capita
UNEMPLOYMENT:
7.8%
INFLATION (CPI):
2.1%
FDI INFLOW:
$9.4 billion
PUBLIC DEBT:
66.2% of GDP

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145
The Heritage Foundation | 
heritage.org/Index
RULE OF LAW
REGULATORY EFFICIENCY
Property 
Rights
Judicial 
Effectiveness
Government 
Integrity
Tax
Burden
Government 
Spending
Fiscal
Health
GOVERNMENT SIZE
OPEN MARKETS
Business 
Freedom
Labor
Freedom
Monetary 
Freedom
Trade
Freedom
Investment 
Freedom
Financial 
Freedom
80
60
70
100
50
0
80
60
70
100
50
0
80
60
70
100
50
0
80
60
70
100
50
0
80.0
85.0
78.6
82.1
65.5
84.9
76.5
8.5
68.7
97.6
97.2
100.0
The overall rule of law is very well respected in 
Finland. The country’s property rights score is 
above the world average; its judicial effectiveness 
score is above the world average; and its govern-
ment integrity score is above the world average.
The top individual and corporate tax rates are, 
respectively, 31.3 percent and 20 percent. The 
tax burden equals 41.9 percent of GDP. Three-
year government spending and budget balance 
averages are, respectively, 55.2 percent and –3.0 
percent of GDP. Public debt equals 66.2 percent 
of GDP.
The business framework encourages innovation 
and productivity growth. The labor market is 
characterized by high costs and burdensome 
regulations. The non-salary cost of employing 
a worker is high, and the severance payment 
system remains costly. The most recent available 
inflation rate is 2.1 percent.
The trade-weighted average tariff rate (common 
among EU members) is 3.2 percent; more than 
600 EU-mandated nontariff measures and nine 
country-specific nontariff barriers are in force. 
Sound and transparent frameworks facilitate 
investment. The financial sector provides a wide 
range of services.
12 ECONOMIC FREEDOMS | FINLAND