After a challenging 2024, Finland’s economy is showing signs of stabilization. The country recorded a modest GDP contraction of 0.3% last year, driven largely by weak external demand and cautious consumer spending. However, forecasts for 2025 are more optimistic, with GDP expected to rebound by 1.5%, supported by recovering private consumption and investment.
Export Performance in 2024
Finland’s export sector faced significant headwinds in 2024. The value of goods exports decreased by 5.5%, with export volumes falling by 3.5%. This decline was attributed to reduced demand from key markets and lower export prices.
Trade with Key Partners
- Germany: Despite being Finland’s second-largest export destination, exports to Germany increased slightly by 0.8% in 2024, accounting for 11.2% of total exports.
- China: Exports to China contracted by 12% in 2023, amounting to €3.56 billion. This decline was largely due to subdued domestic demand in China and a broader slowdown in global trade.
Bright Spots in Investment Goods
A key area of resilience has been in investment goods. Finland’s exports of chemical industry products increased in 2024, with pharmaceutical products growing by 23.4%. Additionally, exports of timber and paper products saw modest growth.
Green Energy and R&D Initiatives
Finland continues to invest in green energy and research and development. The government has committed to increasing R&D funding by approximately €280 million annually by 2030, aiming to drive innovation in key sectors, including green technologies.
Outlook for 2025
While challenges remain, Finland’s export sector is poised for a gradual recovery in 2025. The anticipated GDP growth of 1.5%, coupled with ongoing investments in R&D and green energy, suggests a positive trajectory for the country’s economy and exports.