REGRESSION The economic slowdown caused by the Finnish coronavirus pandemic will be supported by the forest, vehicle battery and other electronics and electrotechnical industries, Etla Economic Research predicts.
However, question marks still surround the service sector.
Etla published its most recent sectoral review Last week, it was noted that several sectors have returned to growth.
Exports of wood products are forecast to grow by 15 per cent and exports of paper products by 10 per cent in 2021. The forest industry accounted for about one-fifth of Finland’s exports in January-August.
Exports of motor vehicles are also strengthening, accounting for almost 7% of exports in the first eight months of the year.
“Approximately half of the production at the Uusikaupunki car plant goes to the United States via Germany. Valmet Automotive’s second battery plant will be completed and in the coming years the return on battery systems may match the return on the automotive industry, he said. Birgitta Berg-Andersson, researcher in Etla.
Exports of ships and aircraft are also forecast to grow by more than 20 percent this year. According to Etla, total industrial production will creep by four per cent this year and three per cent next year.
The recovery of the hotel and restaurant sector, which has been ravaged by a pandemic, is at its peak next year, but will not be completed until 2023. The outlook for the sector is also uncertain due to the possibility of a new pandemic.
“The recovery in the hotel and restaurant sector is indeed progressing steadily, as long as there are no big surprises. The recovery timetable for another sufferer, the cultural and event sector, is still a question mark, acknowledged Markku Lehmus, Etla ‘s forecasting director.
The trade situation is expected to normalize next year.
Aleksi Teivainen – HT