Finland’s exports to Russia fell by 42 per cent in March – “Companies are looking for alternative export and import markets”

The value of Finnish exports of goods in March was about seven billion euros, which is 20 per cent more than a year ago, according to Customs’ preliminary statistics for March.

Exports are higher than in February due to high inflation and rising prices. Exports to Russia from Finland fell by more than 40 percent.

The value of imports from Russia to Finland increased by as much as 63 per cent in March. This is largely due to rising oil and natural gas prices.

In total, the volume of imports of goods into Finland rose by a record 33 per cent from its comparison month, when the figure was 13 per cent. In March of this year, the monetary amount of imports was almost 8.2 billion euros.

The value of imports of energy products into Finland increased by 138 per cent. In the case of exports, for example, the value of timber grew by 39 per cent in March.

Russia’s high volume of imports into Finland is a temporary phenomenon, as Finland is reducing the use of Russian energy.

“Preliminary data on foreign trade describe a situation where the price level is rising unusually sharply, world trade is weakening and Finland’s trade relations with Russia are gradually collapsing,” says Danske Bankin chief economist Pasi Kuoppamäki.

Finland’s trade balance was EUR 1.2 billion in deficit in March. In March last year, the figure was only 295 million euros.

Economic growth will remain modest this year

Economic growth is now slowing in several export markets.

“Companies are looking for alternative export and import markets to Russia. This takes time and challenges profitability. ”

Economic growth this year will rely more on exports than on the services sector. The opening up of society at the end of interest rate restrictions will increase the demand for services. However, the war situation in Ukraine and inflation are plaguing economic growth.

“The general rise in cost levels and inflation is affecting the profitability of companies and the purchasing power of households. Economic growth will remain modest this year, ”says Kuoppamäki.

In March, Finland’s exports to EU countries exceeded imports. According to preliminary data from Customs, EU exports increased by 30.5 per cent and imports by 19 per cent.

However, imports from outside the EU rose by 55 per cent in March, while exports to these countries rose by only 7.2 per cent.

By Editor

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