InnoConnections specialises in assisting foreign companies in finding possible trade partners in Finland. Our consultants are experts in the local markets - we know not only the key players, but also the smaller, dynamic actors that are often harder for an outsider to find. We speak the local language, know the local culture and more importantly, we know what is going on in the local market.
Read about the latest information on opportunities in doing business in Finland from our News section.
For more information about opportunites for your sector in particular, please select the most appropriate category from above.
Finland - a thriving market on the top of the world
Finland is a fascinating, multi-faceted market for foreign companies. Despite its relatively small size, the Finnish market offers a great variety of business opportunities ranging from raw materials to high-tech and from consumer goods to public services.
The Finnish economy is very dependent on the exports markets and world trade. In 2009, the value of export was EUR 61.9 billion (36.2 % of GDP), and the value of import EUR 59.5 billion. Economic growth in Finland has been one of the fastest among OECD countries, and fastest among the world in the past 130 years--outstripping even the US and UK.
The expanded EU remains Finland's most important trading zone, while Russia, the US and China are also significant trading partners.
GDP growth peaked at nearly 5% in 2007 before the global downturn, according to the Finnish Statistics Centre, during which a decline occurred. In 2010, the value of export and import rose again as the global economy started to recover.
According to the Bank of Finland and the European Commission, the economy is expected to recover with the GDP growth rate rising to 3 % in 2011.
The growth forecast for Finland is significantly better than for the most member countries of EU and the EU as a whole. According to the Commission EU as a whole will achieve a 1.7 % growth of GDP in 2011.
Economic growth in 2012 was at its slowest, estimation of 0.8%. In 2013, the growth prediction is 1%. It is still driven by private consumption. In 2013, the global economy is forecast to return to 4% growth. In Finland it is expected that economy activity will recover, and GDP growth is expected to come in at 2% in 2014. Unemployment will slowly edge down to 7.6% in 2013. The unemployment rate is estimated to rise to 8.1% next year. As the exports recover, it is expected that the current account will move to near balance. Exports are estimated to grow by 2.5%.
The credit rating agency Moody’s confirmed the highest possible rating for Finland in July 2012. The agency noted that Finland’s position remains stable. Finland’s small and domestically oriented banking system is a positive characteristic, as well as Finland’s bailout collateral agreements with Greece and Spain will help buffer against any possible losses. It also noted that Finland enjoys relative isolation from the euro area in terms of trade because of its diversified export markets. A comparatively small share of Finnish exports, around one-third, is sold to the euro area.
It is an excellent time to start forging especially longer-term partnerships and trade relations. It is particularly important to lay the groundwork now: as the economy recovers further, competition will get tougher.
Future challenges in Finland include the ageing population that sets new requirements for health care services. Also increasing production of high value services is needed.
For the latest in the Finnish news and economy, take a look at the Finnish Broadcasting Company. YLE News in English
Sources: Bank of Finland, Ministry of Finance, OECD, The Economist, University of Jyväskylä (OED research group),
[InnoConnections has collected its market and sectoral information from sources generally considered reliable. However, we cannot guarantee the information is complete and cannot be held responsible in case of any inaccuracy within these pages.]