Office worker in Helsinki. LEHTIKUVA
A recent study from Intrum indicates that while the number of businesses experiencing payment delays has slightly decreased compared to last year, the wave of bankruptcies is expected to persist through the fall. The accommodation and food service sectors remain among the hardest hit, but public administration, defense, and mining industries have seen the steepest rise in payment delays. Regionally, the highest concentration of businesses facing financial difficulties is in Northern Savonia and North Karelia.
Men in a meeting in Helsinki. LEHTIKUVA
A new study from Danske Bank reveals that Finnish entrepreneurs are increasingly prioritizing maintaining their daily operations over expanding their businesses. The Entrepreneur’s Financial Peace of Mind 2024 survey shows that more than half (53%) of Finnish entrepreneurs are focused primarily on running their day-to-day business, while only 21% consider growth a primary objective.
Entrepreneurs’ financial outlook has also worsened, with just 40% expressing optimism about their company’s financial future—a notable drop from 47% four years ago.
Business Finland logo in Ruoholahti. LEHTIKUVA
A recent survey by Finnish Chambers of Commerce reveals that nearly all Finnish companies have successfully exited the Russian market. According to the export managers’ survey, only 0.9% of the companies are still in the process of withdrawal, but none of them are actively conducting business in Russia anymore.
This marks a significant shift since Russia’s invasion of Ukraine in February 2022, when 78% of responding companies still had operations in Russia.
Shopping trolleys in a Verkkokauppa.com store in Helsinki on 18 July 2024. The online-oriented electronics retailer recently announced a series of consultative negotiations that could result in 45 staff members being laid off. (Mikko Stig – Lehtikuva)
THE DIFFICULTIES of consumer electronics and home appliance retailers are expected to continue, according to Helsingin Sanomat.
The retailers have been struggling in the face of muted demand already for three years, a reality that has resulted in personnel reductions and bankruptcies. Three of Gigantti’s franchise stores, for example, were shuttered recently following the bankruptcy of the operator, JH Caps.
People outside in Helsinki. LEHTIKUVA
In a grim forecast released by the Bank of Finland, the country’s economy is expected to shrink by 0.5% in 2024, with only a slow recovery projected in the following years. The national bank’s interim forecast, published on September 16, 2024, paints a cautious picture of the economic outlook, warning that while growth may return, it will do so at a measured pace—rising to 1.1% in 2025 and potentially reaching 1.8% by 2026.
The European Union is set to impose new tariffs on Chinese electric vehicles (EVs) starting in October, if the member states approve the proposal. These so-called countervailing or punitive tariffs would be added on top of the existing 10% import duties.
The proposed tariffs are part of a broader effort to level the playing field, protect European automakers, and curb the growing market share of Chinese manufacturers in Europe.
People in downtown Helsinki on 9 August 2024. Despite Lindex Group likely moving toward offloading its department store division, Stockmann, Helsinki residents have no need to worry about what for many is an iconic landmark at the heart of the Finnish capital, the flagship store of Stockmann, views an analyst interviewed by Helsingin Sanomat. (Emmi Korhonen – Lehtikuva)
THE FATE of Stockmann department stores is to be decided in the near future, reports Helsingin Sanomat.
Lindex Group, the parent company of Stockmann Group, is expected to announce the results of a strategic assessment of various options for the loss-making department store business by the end of the year, with a divestment the most likely outcome according to analysts interviewed by the daily newspaper.
People shopping at the Iso Omena shopping center in Espoo. LEHTIKUVA
Consumer confidence in Finland remained stagnant and weak in August 2024, according to the latest data from Statistics Finland. The consumer confidence indicator (CCI) held steady at -7.2, the same as in July, and only slightly better than the -8.0 recorded in August 2023. The long-term average for the CCI is -2.5, highlighting the ongoing economic uncertainty among Finnish consumers.
Slight Improvement in Personal Economy, But Overall Outlook Gloomy
Gantry cranes and shipyard cranes surrounded a cruise ship at Turku Shipyard on 14 August 2024. Meyer Turku, the operator of the shipyard, has announced it has signed an agreement for building the fourth cruise ship in the Icon Class for Royal Caribbean Cruises. (Jussi Nukari – Lehtikuva)
MEYER TURKU on Tuesday announced it has signed an agreement for building the fourth cruise ship in the Icon Class for Royal Caribbean Cruises. The agreement also includes an option for a fifth and sixth cruise ship in what is the largest-ever class of cruise ships, each with a price tag of about 1.5 million euros.
“This order is an important milestone for the future of Finnish shipbuilding and the maritime industry,” Tim Meyer, the managing director of Meyer Turku, said in a press release on Tuesday.
Beers on display in K-Citymarket in Ruoholahti, Helsinki, on 16 July 2024. The Finnish government recently pushed through a legislative change that changed the alcohol content limit for beverages sold at supermarkets from 5.5 to 8.0 per cent for beverages produced by fermentation. That the limit stayed unchanged for other types of beverages has drawn criticism from alcohol industry interest groups. (Aada Petäjä – Lehtikuva)
THE FINNISH alcohol industry is broadly displeased with a legislative change that has brought stronger alcoholic beverages to supermarkets, reports YLE.
The Association of Alcoholic Beverage Suppliers in Finland (SAJK) and Spirits Europe have submitted complaints about the change to the European Commission. The Federation of the Brewing and Soft Drinks Industry, meanwhile, is expected to submit its complaint by late September.
