1. Growth is wide-ranging
The emerging economic growth is reflected in almost all industries. It is therefore broad-based and is not just based on domestic demand, as it has been swamped between.
The Finnish economy has turned, and the turn is on a broader footing.
Urrila does not want to raise, for example, any single investment solution, for she says that both good and bad news comes every day. Now the news is still mostly positive, which means a lot.
2.Turku Shipyard’s investment was doubled
Shipbuilding company Meyer Werft announced on Wednesday that it will double its investment in the Turku shipyard. It invests a total of 185 million euros in Turku, which will build a new plate production line, a new profile section production line and an automatic profile store.
Satge is really significant. The effects of a major investment are expected to be radiated from shipyards extensively elsewhere through subcontracting chains.
In business, these are relatively long-lasting things, says Mika Kuismanen of Finnish Entrepreneurs.
3. Nordea transfers its head office to Finland.
On Wednesday, the banking group Nordea announced that it would transfer its headquarters from Stockholm to Helsinki. Previously, alternatives were to stay in Sweden or to change to Denmark. Nordea has justified the decision on the foreseeability of government regulation brought to Finland by the EU banking community.
Moving to Finland is due to take place at the end of 2018. Nordea has not announced how many employees are going to Finland, but Finance Minister Petteri Orpo has previously estimated that the head office will bring directly or indirectly hundreds of jobs to Finland.
According to EK Penna Urrila, the change of Nordea’s domicile is mainly about changes in the legal structure, but it is, however, a symbolically significant news that has a positive impact on the moods and shows good Finnish competitiveness. The same goes for Finnish entrepreneurs Kuismanen.
Nordea’s case does not have a great immediate economic impact, but it has a signal effect that the Finnish operating environment is at least reasonable, he praises.
4. Exports grow faster than imports
Preliminary statistics on foreign trade in Finland show that Finland’s goods exports grew by 20 per cent on the previous year. Growth was visible in almost all of the largest commodity groups, with the largest increase in exports of passenger cars and oil products.
It is particularly important that exports are now growing faster than imports, says Kuismanen.
Kiema reminds us that, although there is much talk about the impact of various measures taken in Finland, a major cause for the good situation has been the fact that economic growth has sparked in Europe and the world in general.
In Finland, exports account for about a third of gross domestic product, he stresses.
5. Useita suuria rekrytointeja
The large ship orders received by the Meyer Turku shipyard guarantee jobs for years by shipyard and subcontractors. The shipyard alone has planned to hire hundreds of new employees by the end of next year.
Similar effects have already taken place, for example, with additional orders received by the Uusikaupunki’s automobile. As a result, even in Southwest Finland, there has been talk of a shortage of labor. New employees have been recruited regularly from across the country, and its subcontractors employ a lot of people.
For example, Finnair has, among other things, recruited new pilots, cabin crew and digital experts. Last year, the company estimates that it will hire about 1,400 new employees by 2020.
6. Economic growth surprised almost everyone – many have corrected their forecasts upward
Finland’s economic growth seems to be surprising for banks and other factors of financial performance. Even though they have been expecting a favorable economic development, new positive signs have led many of them to overrun their growth expectation rates during the spring and summer. The latest estimate was corrected by Aktia Bank.
7. Bankruptcies are being made less and less
The improvement in the economy also shows that companies have made fewer bankruptcies. For example, in January-July bankruptcies were initiated by 15 percent less than a year earlier.
The number of bankruptcies is on a downward trend. Particularly good is that the number of bankruptcies has declined in every major sector, says Kuismanen.
The largest number of bankruptcies fell in January and July in services and construction.
8. Finland is interested in tourists
Finland has become increasingly interested in foreign tourists. Finnish tourism is of interest to, for example, Chinese people who are not kicks on their trips.
According to preliminary data, travel from abroad to Finland may reach 10-20% growth rates this year.
Before the interest of tourists in Finland can produce an even bigger increase in GDP, it will require capacity growth and investment in the sector, Kiema says.
9. Taxes accumulate bigger pots than before
Government tax accumulation has increased, which makes it slightly easier for the public finances. The increase in tax revenue is reflected, for example, in the budget proposal just announced by the government: the deficit has declined, which means that the state makes less losses last year.
10. Prices do not rise too fast
Moderate inflation prospects are a positive thing, because they keep the business environment predictable, Kuismanen considers.
If inflation began to fall, the European Central Bank would have to react. There are no significant price pressures, at least in the medium term, and there is no shock in monetary policy.
It is also good from a consumer perspective that prices will not rise quickly. EK Urrila recalls, however, that non-existent inflation reflects on the fragility of the economy and does not give a reliable picture of the economy. Consequently, for example, central banks have to continue their stimulus efforts.