HELSINKI -- China's economic growth and demand for paper products will be the main impetus for the Finnish forest industry to get out of the impact of the COVID-19 pandemic, according to a forecast issued Thursday by a Finnish think tank.

According to Pellervo Economic Research PTT, due to the impact of the pandemic, Finland's paper exports experienced an unprecedented plunge in 2020, about 25 percent down from 2019.

As the world's economies reopen from the lockdowns, the Finnish forest industry will grow rapidly this year and the next, said PTT.

Matti Valonen, forest economist at PTT, said in a press release that the total value of Finnish forestry exports this year will rebound up to 7 percent from the previous year. In 2022, there will be an increase of about four percent. "The recovery depends on the growth of the world economy," he added.

The think tank pointed out that the price of pulp in the international market has risen in recent months and the strong growth of China's economy, with increasing demand for cardboard and paper towels, is an important factor.

"This year, there will even be a spike in sawn timber exports and prices, when demand for products is growing strongly and empty stocks are even record-breaking in some places," Valonen noted.

PTT, a non-profit organization, is an independent institute of applied economics in Finland. The institution is policy-oriented, and its research focuses on globalization and regional development, food, forestry, housing, and welfare.

Finland is one of the largest pulp, paper, and cardboard producers in the world, and one of the largest sawmill producers in Europe. The Finnish forest industry currently generates about one-fifth of the country's export revenues.

The industry, directly and indirectly, employs approximately 160,000 people, accounting for approximately 15 percent of industrial jobs in the country.