FINLAND SUPPLEMENT TO THE TRANSATLANTIC ECONOMY 2021 - Annual Survey of Jobs, Trade and Investment between the United States and Finland
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THE FINLAND SUPPLEMENT TO THE TRANSATLANTIC ECONOMY 2021 Annual Survey of Jobs, Trade and Investment between the United States and Finland Produced by
TABLE OF CONTENTS
INTRODUCTION
Greetings from Amcham Finland3
Greetings from U.S. Embassy Finland4
Greetings from Ministry for Foreign Affairs Finland5
ANALYSIS
Economic Relationship between the U.S. and Finland6
READER'S DIGEST
Reader’s Digest: The Finnish-American Reader’s Digest
to THE TRANSATLANTIC ECONOMY 2021 Report9
ECONOMIC FORECAST
Economic Forecast for the U.S.11
Economic Forecast for Finland12
OVERVIEW
Finland and The United States13
LAUNCHPAD USA
Launchpad USA14
OPPORTUNITIES
Opportunities for U.S.-Finland Cooperation & Business15
2
INTRODUCTION
GREETINGS FROM
AMCHAM FINLAND
Alexandra Pasternak-Jackson, CEO
The transatlantic economy remains the largest and wealthiest in the world, not just in terms of trade and investment,
but also when it comes to data flows, digital content, and a burgeoning digital economy. In a time of unrelenting
change, frequent disruption, and uncertainty, the deep relationships between the U.S. and the EU and the U.S.
and Finland remains firm. We are each other’s most important commercial partners when it comes to services,
trade, and investment. We share the key common values of democracy, rule of law, human rights, and a shared
commitment to be a force of good towards a better future for our children and the generations after us. We are
at a pivotal point in history, and promoting a positive and constructive transatlantic economy is our key to mutual
growth and competitiveness.
To highlight the importance of the economic relationship between the U.S. and Europe, Amcham Finland has co-
sponsored the Transatlantic Economy Report, written by Joseph P. Quinlan and Dan Hamilton of SAIS at John
Hopkins, and produced by AmCham EU and the U.S. Chamber, in cooperation with AmChams from Finland,
Sweden, Ireland, Denmark, and Slovenia.
For the first time ever, we offer the Finland Supplement to the Transatlantic Economy Report. We see U.S.-Finnish
Economic analysis by Juho Kostiainen, Senior Analyst from Nordea, as well as insights from Wall Street economist
Joseph P. Quinlan, a reader’s guide to the Transatlantic Economy Report, and more. There are tremendous
opportunities for growth, innovation, and positive impact on both sides of the Atlantic.
In these pages you will note the huge market potential for growing together towards an even stronger and more
intertwined economic and investment relationship between Finland and the U.S.
To be a part of the transatlantic community, indeed to be part of the Amcham Finland community, is to work
together towards a brighter future, to really believe that we are more than the sum of our parts. Together, we
will always be more innovative, create more value for society, and be more inclusive than we would be apart.
The strength of transatlantic ties is in innovation, human capital, technology, trade and investment, and in our
willingness to push forward with optimism and grit. We hope you enjoy this first ever Finland supplement to the
Transatlantic Economy Report and look forward to working with our members and stakeholders to help business
grow, add jobs to our economies, and deepen the economic relationship between the U.S. and Finland.
Sincerely,
Alexandra Pasternak-Jackson
CEO
Amcham Finland
3
INTRODUCTION
GREETINGS FROM
U.S. EMBASSY FINLAND
Ian Campbell, Chargé d'Affaires ad interim
Transatlantic Business Leaders, Greetings.
Congratulations on the publication of the first ever Finland Supplement to The Transatlantic Economy Report.
For generations the transatlantic relationship has served as the cornerstone of our collective security and
prosperity, and as a solid foundation for partnering to face global challenges. Today, we reaffirm the importance
of the transatlantic relationship and our commitment to working in partnership to face the challenges of our time,
from confronting the ravages of a global pandemic, to mitigating the effects of climate change, to advancing the
digital economy and adapting to the ever-increasing complexity of the economic landscape, to ensuring supply
chains are served by ethical and trusted vendors who are dedicated to a rules-based international economic
system.
Each year The Transatlantic Economy Report shows how vital the transatlantic economy is in terms of global
economic activity. This year, the Finland Supplement reveals the power of the Finnish-U.S. economic relationship.
While the data alone is impressive, the stories behind (and even beyond) the data are even more compelling
and inspirational – when Finnish and American businesses work together, they create solutions that go global.
Whether in information technology or new energy solutions or any number of other advanced knowledge-based
industries, Finnish and American business leaders are partners at the cutting edge of the innovation economy for
global growth.
We are delighted by the publication of the first ever Finland Supplement to the Transatlantic Economy Report.
And we are looking forward to working with Amcham Finland and our Finnish and American businesses as we get
better at telling our story, and as we bring the value of our partnership into sharper and clearer focus in the years
to come.
Best regards,
Ian Campbell
Chargé d'Affaires ad interim
4
GREETINGS FROM
MINISTRY FOR FOREIGN AFFAIRS FINLAND
Ville Skinnari,
Minister for Development Cooperation and Foreign Trade
I would like to thank Amcham Finland for producing this first of its kind Finland supplement to the annual
Transatlantic Economy Report. It is a comprehensive package that gives essential information about jobs, trade
and investments between the United States and Finland. It also makes a convincing case for stronger cooperation
between Finnish and American businesses in many important sectors.
The United States is a key trade and investment partner for Finland and our largest trading partner outside the
European Union. As the world’s largest economy, the U.S offers huge market potential and virtually unlimited
opportunities for Finnish businesses, and as a highly innovative and open economy, Finland is well equipped for
these markets.
Together, Finland and the United States lead key areas of technological innovation and environmentally friendly
solutions. Finland offers advanced solutions in bio- and circular economy and clean technologies, 5G/6G
technologies, ship-building and in the marine industry, such as autonomous vessels and ice breakers. We are
global leaders in meteorological science and weather technology, mapping changing conditions in the Arctic and
elsewhere.
Cooperating successfully with Michigan and Maine in green technologies is a tangible example of the potential for
a bright future when Finland and the U.S. work together. Finnish companies are at the forefront of technological
innovation, offer secure and reliable networks, and are therefore natural partners for the United States. We are keen
to develop research cooperation with U.S universities and institutions as well as joint projects in third countries.
Finally, I would like to point out that Finland is an extremely attractive place to invest and do business. We have
an open, dynamic market economy with a highly skilled workforce and good infrastructure, and we have a strong
entrepreneurial spirit. Finland already has deep cooperation with the United States in each of these fields, and we
look forward to strengthening our relationship in these and other sectors in the future.
Best regards,
Ville Skinnari
Minister for Development Cooperation and Foreign Trade
5
ANALYSIS
ECONOMIC RELATIONSHIP BETWEEN
THE U.S. AND FINLAND
Juho Kostiainen
Economist, Senior Analyst, Nordea
Introduction
The global pandemic has shaken the world during the opportunities for Finnish companies. Hybrid cars and
past year. The negative consequences have also hit biofuels are already exported from Finland to the
global trade, which declined 5% in 2020. U.S. The traditional forest industry is also increasingly
leaning towards environmentally-friendly products,
However, trade between the U.S. and Finland has fared
substituting fossil-based fuels and materials with wood-
well. Finnish exports to the U.S. increased by 13% in
based products.
2020, despite the 11% decrease in Finland’s total exports
value for the year. The U.S. was the second-largest Advanced technology is something that Finland and
trading partner for Finland in 2020 – almost on a par the U.S. have in common. The U.S. tech giants provide
with Sweden. Export growth to the U.S. was driven by services and technology to Finnish customers and
services, which grew 34% year-on-year, while exports of companies, and Finland produces niche products for
goods increased by just 1%. This development highlights the U.S. market. The frontrunners are medical devices,
the underlying trend in Finnish exports, with services machinery and IT devices. This includes 5G networks
already accounting for one-third of total exports. and maritime-industry solutions.
Competition in technology is furious and China is
The change in the U.S. political landscape has improved
the outlook for transatlantic co-operation. The new challenging western countries at this game. Transatlantic
Biden administration has a more friendly attitude co-operation between companies and researchers
towards Europe, easing fears of new trade tariffs. Theshould be further fostered to speed up innovation and
global fight against climate change – embraced by the the transition to new technologies. The diffusion of
new U.S. administration – could provide good business technology can improve productivity in both importing
and exporting countries.
Figure 1. Finland's exports by country, 2019 and 2020 (EUR, bn)
Sweden
United States
Germany
Netherlands
China
United Kingdom
Russia
0 2 4 6 8 10 12
2019 2020
Sources: Statistics Finland and Nordea
6
Service trade
Trade in services between Finland and the U.S. has increased significantly in recent years. In 2020, Finland exported
services worth EUR 4.6 billion to the U.S., despite two weak quarters in the middle of the year. Exports of services
to the U.S. have almost trebled since 2013. In 2020, the U.S. was the most important service export country for
Finland, accounting for 18% of Finland’s total exports of services. ICT services are in the leading position, followed
by fees for the use of intellectual property. Imported services from the U.S.to Finland were worth EUR 2.5 billion in
2020. Business services represent the largest services import item from the U.S. to Finland. It should be noted that
some U.S. companies use European subsidiaries, especially in Ireland, and hence do not show in U.S. bilateral trade
statistics. Imports of services from Ireland to Finland totaled almost EUR 2 billion in 2020, a figure that mostly
represents trade with U.S. companies based in Ireland.
The digital economy is growing fast and has made service exports one of the high-productivity sectors. The U.S.
market provides Finnish service suppliers with substantial opportunity to follow the leading example of the IT
sector and the gaming industry. On the other hand, Finland can provide good infrastructure and highly-skilled
labor to U.S. tech giants looking to expand their European operations.
Figure 2. Finland's foreign trade, exports to the U.S. (EUR, bn.)
6 5,5
5,5
5 4,6 4,7 4,6
4,3
4,0 4,1
4 3,8
3,4
3,0
3 2,7
2,5 2,5
2,0
2 1,6
1
0
2013 2014 2015 2016 2017 2018 2019 2020
Goods Services
Sources: Statistics Finland and Nordea
Goods trade Figure 3. Share of goods exports from Finland to the U.S. (%)
The U.S. is also one of Finland’s main goods
Ships
trading partners, with a 9% share of Finland’s Other 20 %
total goods exports. In 2020, total exports of 23 %
goods from Finland stood at EUR 5.6 billion.
The largest category is that of ships, making
up 20% of total exports. This is followed by Pharmaceutical
medical and optical devices, with an export 3%
share of 18%. Transport equipment, mainly
Mineral Fuels Optical,
passenger cars, also represent a big export 4% Measuring,
item to the U.S., although they are not always Medical
counted correctly in trade statistics as they Electrical Instruments
Machinery and 18 %
are exported through a third country. Goods Equipment
imports from the U.S. are less significant for 6%
Finland, with a value of around EUR 2 billion Machinery and
Paper, Articles Mechanical
in 2020. of Paper Pulp Appliances
€5.5
12 % 14 %
bn Sources: Finnish Custom and Nordea
total exports of goods from
Finland to the U.S. in 2020
7ANALYSIS
Foreign direct investment
Foreign direct investment is a significant driver of Finland’s GDP. Foreign-owned multinationals produced close
to one-quarter of total added-value on the Finnish market in 2018. Much of that investment is in service-based
activities, as 59% of added-value generated by foreign-owned multinationals was from services industries. This
was followed by heavy industry, which accounted for one-third of total foreign direct investment.
After Sweden, the U.S. is the second-largest source of foreign direct investment in Finland, according to the balance
of payments statistics. U.S.-owned enterprises produced most of their added-value in the ICT industry. Almost
two-thirds of output from U.S. firms in the ICT industry is exported. The U.S. also undertakes significant foreign
direct investments in wholesale trade and the chemicals industry. In 2019, total investments from Finland to the U.S.
were USD 14,8 billion according to statistics from the Bureau of Economic Analysis.
Figure 4. Foreign Direct Investments Position (USD, bn.)
15,0
12,5
Finnish FDIs to the U.S. U.S. FDIs to Finland
10,0
7,5
5,0
2,5
0,0
Sources: Bureau of Economic Analysis and Nordea
Jobs
The Finnish labor market has changed dramatically in the past decades, with many manufacturing jobs disappearing
as in the U.S. A significant portion of recent years’ job growth has been in domestically-orientated activities, such
as health and social care, but also through growth in firms exporting IT and information services. In fact, average
annual employment growth in firms exporting services amounted to more than 15% in nominal terms between
2008 and 2016.
Foreign companies are big contributors to the Finnish economy. In 2019, some 279,000 people in Finland (18% of
the Finnish workforce) worked in foreign-owned enterprises. U.S. companies employed 21,228 people in Finland
and generated annual turnover of EUR 13 billion. Finnish companies employed 36,283 people in North America,
with annual turnover of EUR 26 billion.
In 2016, about 35% of the Finnish labor force was classified as high-skilled and 53% as medium-skilled. This is
relevant as export-oriented firms and multinationals hire more high-skilled workers.
Conclusions
The U.S. is one of Finland’s key trading partners in goods and services, as well as for direct investment. The Biden
administration’s agenda is likely to strengthen the relationship further. The U.S. economy is forecast to recover
faster than Europe from the Covid-19 shock, which makes transatlantic trade opportunities even more attractive
to Finnish companies. Finland’s stable society, well-educated labor force and access to the EU single market can
provide U.S. companies with an attractive environment for their production or R&D activities.
Sources: Official Statistics of Finland: Foreign subsidiaries in Finland [online publication]. ISSN = 1797-9552. 2019, Appendix
table 1. Foreign subsidiaries by country 2019. Helsinki: Statistics Finland.
The Transatlantic Economy 2020: Annual survey of Jobs, Trade and Investment between the United States and Europe. Daniel
S. Hamilton and Joseph P. Quinlan. Amcham EU.
Suomen ja Yhdysvaltojen Väliset Taloussuhteet. 2009. Markku Kotilainen, Viööe Kaitila, Nuuti Nikula, and Paavo Suni. Etla.
Globalisation in Finland: Granular Insights into the Impact on Businesses and Employment. 2020. OECD and Statistics Finland.
8READER'S
DIGEST
READER’S DIGEST:
THE FINNISH-AMERICAN READER’S DIGEST TO
THE TRANSATLANTIC ECONOMY 2021 REPORT
These insights for U.S. and Finnish audiences are taken directly from The Transatlantic Economy Report 2021: Annual Survey
of Jobs, Trade and Investment between the United States and Europe by Daniel S. Hamilton and Joseph P. Quinlan.
The year ahead will be a time to heal. Despite the China
$10,262
headwinds and uncertainties brought on by the Covid-19
pandemic, many factors point to continued economic
recovery through 2021. There is also an expectation that
European companies operating in the United States will
enjoy more favorable conditions in the year ahead.1 EU avg. Germany Finland Netherlands Switzerland
~$35,000 $46,445 $48,783 $52,331 $81,994
With mass vaccination drives taking place on both Per capita income compared to China11
sides of the Atlantic, consumer spending is expected
Globally, renewable energy is emerging as a key sector
to come back with a vengeance.2 In April 2020, the U.S.
and is of growing interest for sustainable investing.11
savings rate reached its highest level on record, at 34%
Largely unnoticed by the media and politicians, U.S.
of disposable personal income. On aggregate, personal
companies in Europe have become a driving force
income increased by USD 1.2 trillion, or 6.3%, in 2020 –
for Europe’s green revolution, especially through the
the highest rate of increase in 15 years. High savings and
addition of wind and solar capacity on the continent.12
rising incomes have led to a quick recovery in consumer
Since 2007, U.S. companies have been responsible
spending, especially in durable goods.3 More spending
for more than half of the long-term renewable energy
means more transatlantic trade in 2021.4
agreements in Europe.13 In fact, Europe and the United
Despite the pandemic, Austria, Denmark, Finland, and States accounted for over 80% of all green bonds issued
France saw their investment income in the United States in 2020 and 78% of all sustainable debt issuance.14
increase in the first nine months of 2020, compared to The government of Finland plans to devote Finland's
the same period in 2019.5 share of a nearly three-billion-euro EU Recovery and
Resilience Facility towards helping the country pursue
Disruption drives acceleration
a "green transition" away from a reliance on fossil fuels,
The pandemic and its ripple effects generated while one-quarter of the funding will be used towards
disruptions across both China-centric and transatlantic digitalization. This, along with the Biden administration’s
supply chains.6 The Transatlantic Economy Report re-entry to the Paris agreement and its other
2021 shows how the ties that bind the EU to the United sustainability commitments, will bring many business
States are much thicker and far deeper than those that opportunities for both Finnish and U.S. companies alike.
bind either to China.7 Investing in Europe or the United
Analysts estimate that the Covid-19 crisis has
States is relatively easy, while investing in China remains
accelerated the adoption of a wide range of digital
difficult. This is due to restrictions on foreign ownership
technologies by at least two years.15 Between 2020 and
and rules around forced technology transfer, as well as
2023, companies are expected to spend USD 6.8 trillion
heavily subsidized competition from state-owned and
on digital transformation. By the end of 2021, 60% of
state-controlled Chinese companies.8
global GDP will be digitized.16 The pandemic has also
In addition to being one of the largest economic blocs been a major accelerant of med-tech research.17 Digital
in the world, Europe is also wealthy. This means the bloc tools powered the unprecedented global sharing of
enjoys an abundance of skilled labor, world class R&D gene sequencing data to track and treat SARS-CoV-2,
infrastructure, and rising per capita incomes.9 Finland’s the virus that causes the Covid-19 disease.18
competitive strengths include strong protection
of property rights, macroeconomic stability and
transparent institutions.10
DID YOU KNOW? DOWNLOAD
? In 2019, Finland was a top European Import The Transatlantic Economy Report 2021:
Market for both Alaska (ranked 3rd) and Annual Survey of Jobs, Trade and Investment
Maryland (ranked 5th), providing $26 million between the United States and Europe
and $666 million in imports respectively.
9
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Page 42Advances in life sciences and digital services
40 % Transatlantic digital connections are illustrated through
cross-border data flows. These exchanges contribute
By 2025, 40% of the global more to global growth than global trade in goods,
economy will be in health. underpinning and enabling virtually every other kind of
cross-border flow.26 While data flows are commercially
By 2025, the health sector will account for 40% of the significant, their volume and commercial value are in
global economy – the largest share held by any sector constant flux and thus difficult to measure.27 The United
or industry. This explosion of genetic and health data States is a major hub for international trade in products
holds significant potential for scientific and medical delivered through data flows. Transatlantic flows of data
achievements worldwide. Telemedicine, telepresence have traditionally been the fastest and largest in the
and telesurgery are transforming medical techniques world, but this dominance is waning. Data flows are now
and generating greater cross-border trade in healthcare more globally distributed, and companies are facing
services.19 Finland ranks 7th in the Global Innovation significant and growing legal uncertainty in transferring
Index 202020, an indication of the country’s vast potential personal information out of the European Union.28
to foster innovative solutions in the life-science sector.
The European Commission has advanced major
American life-science companies operating in Finland
initiatives through its Digital Services Act and Digital
appreciate the country’s agility and its potential as a
Markets Act that could create additional complications
testbed.
for U.S. investors and the new U.S. administration alike.29
In 2019, the United States registered a USD 219.9 billion The success of U.S.-EU digital markets rest on successful
surplus in trading digitally-enabled services with the cooperation around such issues. Transatlantic business
rest of the world. Its main commercial partner was sees potential for U.S.-Finnish collaboration on all digital
Europe, to which the U.S. exported more than USD 245 transformations that impact the transatlantic economy.
billion in digitally-enabled services, and from which it
Partners in innovation and growth
imported an estimated USD 133 billion. This generated a
trade surplus with Europe of more than USD 112 billion.21 Given all of the above, Europe remains a key destination
for U.S. companies looking to expand their global
Finland and the United States ranked 6th and 8th
footprint. The region is large, wealthy, richly-endowed,
respectively in the 2020 Network Readiness Index.22
open for business, and an innovation leader in many
The 2020 Network Readiness Index ranks a total of key global industries.30 Meanwhile, transparent
134 economies based on their performance across rule of law, sophisticated accounting, auditing, and
60 variables. The index measures how prepared reporting standards, secure access to credit, ease of
countries are to leverage the opportunities offered entrepreneurship, and respect for intellectual property
by technological innovation.23 Finland and the United rights have all contributed to the stable and supportive
States are both in the top ten performing countries in business environment in the United States. European
the world, with huge potential for business growth. firms maintained their dominant foreign investment
position in the United States in 2020.31
Demand for international bandwidth is doubling every
two years. All the stay-at-home activity driven by the Finland’s competitive strengths and stable business
pandemic boosted average international internet traffic environment encompass many of the characteristics
by 48% in 2020.24 By the end of 2021, cross-border that U.S. companies value. By increasing its attention to
bandwidth is projected to be 400 times the level it was the areas outlined in this Reader’s Digest and the report
in 2005. Global Internet Protocol (IP) traffic, a proxy for in full, Finland has tremendous potential to grow its
data flows, is projected to reach 150,700 gigabytes per share of transatlantic trade, and the U.S. has a reliable
second. This is more than triple the level of three years ago.25 and advanced partner in Finland.
Table 2. Finland and the U.S. in Global Business Rankings
Finland U.S.
Measure Year
Ranking Ranking
World Bank Ease of Doing Business 2020 20 of 190 6 of 190
World Economic Forum Global Competitiveness Index 2019 11 of 141 2 of 141
Forbes Best Countries for Business 2019 13 of 161 17 of 141
Bloomberg Innovation Index 2020 7 of 131 9 of 131
Brand Finance Most Valuable Nation Brands 2018 36 of 100 1 of 100
IMD World Talent Ranking 2020 12 of 63 15 of 63
Sources: World Bank, World Economic Forum, Forbes, Bloomberg, Brand Finance, IMD
10
19.
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21.
Page 46 24Page 56 27.Page 55 30.Page 83ECONOMIC
FORECAST
ECONOMIC FORECAST
FOR THE U.S.
Joseph P. Quinlan
Senior Fellow, Transatlantic Leadership Network
The U.S. economy declined by 3.5% in 2020, but steadily distributed on both sides of the ocean and services
gained momentum in the second half of the year, and activities rebound from the depths of recession.
is expected to expand by 5.1% this year, according to
All of the above is another way of saying that the U.S.
estimates from the IMF. The U.S. economy will again
economy, while exhibiting signs of resiliency, confronts
outperform Europe this year, but there are plenty of
plenty of cyclical and structural challenges, in addition to
soft spots in the United States, ranging from weak
the herculean task of distributing vaccines to hundreds
retail demand to a battered travel and leisure industry.
of millions of Americans.
While manufacturing activity has rebounded, services
activities remain weak, creating winners and losers The sooner vaccines can be distributed and
across the economy. The stock market has propelled administered across the United States and Europe,
average household net worth to record highs in the the sooner the transatlantic economy can heal. In the
United States, although nearly two-thirds of Americans near-term, Covid-19 concerns will temper consumer
live paycheck to paycheck. Unemployment levels have spending on both sides of the Atlantic, although a
come down somewhat from last summer’s highs, but second-half rebound in transatlantic spending is widely
the level of unemployment remains elevated among expected. At $14 trillion, U.S. personal consumption
U.S. retail workers, women, and Black Americans. remains one of the most potent economic forces in the
world, accounting for nearly 30% of global personal
We expect the employment picture to improve
consumption in 2019 – greater than that of the next
gradually this year, following historic declines in 2020.
five largest consuming markets in the world combined:
Jobs markets in both the United States and Europe are
China, Japan, Germany, the UK, and India. Since the U.S.
slowly set to improve. A normalized transatlantic jobs
consumer accounts for 70% of U.S. GDP, as goes the
market is not expected until the vaccine has been widely
U.S. consumer, so goes the U.S. economy.
Figure 6. The U.S. vs. Euro Area (Real GDP, Annual Percent Change)
6
5
4
3
2
1
0
-1
-2
-3
-4
-5
U.S. Euro Area
-6
-7
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2020*
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2021*
*2020 estimate, 2021 forecast. Data as of March 2021.
Sources: International Monetary Fund; U.S. Bureau of Economic Analysis; Eurostat.
11ECONOMIC FORECAST
FOR FINLAND
Juho Kostiainen
Economist, Senior Analyst, Nordea
The Finnish economy is forecast to grow by 3% this Figure 5. Finland: GDP Forecast (Index 2015 = 100)
year after a 2.9% drop in 2020. Private consumption
will serve as the driver of the economic recovery this 113
year. As the coronavirus restrictions are removed
and the economic uncertainty abates, consumers
111
are expected to start spending again, and pent-up
demand will begin to unwind.
109
The manufacturing sector has fared substantially
better during the coronavirus crisis than in many
previous crises, and the recovery of the global 107
economy will improve the outlook for exports and
investment. The quick rebound in the housing market 1/2021
has sent the number of building permits for residential 105
construction rising, and housing construction is
expected to begin growing again this year.
103
The government has assumed a large role in 5/2020
managing the economic fallout from the coronavirus
crisis, offering relief to businesses, municipalities and 101
the unemployed from the public purse.. However, the
public finances have a structural deficit that will not
99
fully disappear once the economy picks up.
The risks facing the economy have not disappeared
97
either, and the forecasts include a considerable
GDP Volume Trend Indicator of Output
degree of uncertainty. The forecasts are based on the
assumption that the coronavirus crisis in Finland will 95
remain moderate in the spring and will subside in the 2015 2016 2017 2018 2019 2020 2021 2022
summer, and that no new sweeping restrictions will
have to be imposed next autumn. Sources: Nordea and Macrobond
Table 1. Finland: Key Figures 2018 2019 2020E 2021E 2022E
Real GDP, % y/y 1,3 1,1 -3,0 3,0 2,0
Consumer prices, % y/y 1,1 1,0 0,3 0,8 1,2
Unemployment rate, % 7,4 6,7 7,7 7,6 6,9
Wages, % y/y 1,7 2,1 1,8 2,0 2,0
Public sector surplus, % of GDP -0,9 -1,0 -4,7 -3,1 -2,5
Publice sector debt, % of GDP 59,6 59,3 70,7 70,5 70,7
ECB deposit interest rate (at year-end) -0,40 -0,50 -0,50 -0,50 -0,50
Sources: Nordea Economic Outlook 2021
12FINLAND AND THE UNITED STATES
United States in Finland Finland in the United States
21,228 Jobs
36,283
Jobs directly supported by majority-owned affiliates. Estimates for 2019. Total U.S.-related jobs are likely to be higher, because these figures do not include jobs
created by trade flows, indirect employment effects through distributors or suppliers, or via non-equity arrangements such as strategic alliances, joint ventures, or
other deals.
$3.7 bn Investment $14.8 bn
Foreign Direct Investment (FDI), 2019 Foreign Direct Investment (FDI), 2019
The direct investment balance favors the United States, with Finnish investment in the U.S. rising in 2019 to over $14 billion. Total
employment by Finnish companies in the U.S. has also risen substantially over the past few years from 23,000 in 2015 to over
36,000 in 2019. Finnish direct investment in the U.S. is heavily concentrated in the wholesale trade and manufacturing industries,
representing 15% and 72% of total FDI, respectively.
U.S. FDI Position in Finland Finland FDI Position in the U.S.
Billion $ Billion $
16 16
14 14
12 12
10 10
8 8
6 6
4 4
2 2
0 0
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Foreign direct investment position, historic-cost basis, 2000-2019.
$1.8 bn Trade in
Goods
$6.4 bn
U.S. Goods Exports to Finland, 2019 U.S. Goods Imports from Finland, 2019
2.1% The U.S. supplied 7.5% …but the U.S. share 7.5% The U.S. received 7.5% 18.1% …but the U.S. share
2.1% of Finland's increases to 7.5% of the total goods increases to 18.1%
total imports… when intra-EU trade Finland exported to when intra-EU trade
is excluded from the the world… is excluded from the
total. total.
Top Five U.S. Goods Exports to Finland ($ millions) Top Five U.S. Goods Imports from Finland ($ millions)
Computers & 385.1 Chemical 1,054.7
Electronics 621.1 Manufactures 171.8
Mining
293.6 Machinery 897.6
93.0 Manufactures 474.6
Transportation 241.9 Petroleum & 851.8
Equipment 215.5 Coal Products 288.2
Chemical 224.3 818.1
Paper Products
Manufactures 76.7 702.6
Machinery 164.9 Transportation 786.1
Manufactures 161.5 Equipment 494.6
0 10 1,000 100,000 0 10 1,000 100,000
n 2019 n 2000 n 2019 n 2000
Top State Exporters of Goods to Finland ($ millions) Top State Importers of Goods from Finland ($ millions)
1 2 3 4 5 1 2 3 4 5
239.1 144.0 136.6 97.8 82.3 1,047.6 705.5 665.0 493.5 383.7
Texas California Michigan Georgia Ohio Pennsyl- New Jersey Maryland Texas Georgia
vania
$2.0 bn Trade in
Services
$1.8 bn
U.S. Services Exports to Finland, 2019 U.S. Services Imports from Finland, 2019 13
Note: U.K. included in EU for purposes of calculating intra-EU trade.
Sources: Bureau of Economic Analysis; U.S. Commerce Department; International Monetary Fund; Office of Trade and Economic Analysis.LAUNCHPAD
USA
LAUNCHPAD
USA
Mike Klyszeiko
Director of Launchpad USA, Amcham Finland
Launchpad USA is the most effective U.S. market entry platform available
to Finnish companies. It's offered exclusively to members of Amcham
Finland.
On the Launchpad, Finnish companies receive a tailored market entry
plan that is designed to:
Minimize risks associated with doing business in America.
Accelerate marketing and sales activities.
Deepen the knowledge of the U.S. market.
Provide ongoing support through the entry and growth
stages of doing business in America.
"This is exactly the kind of support we have been looking for."
Pavlos Ylinen, Managing Director
Datafisher Oy
"I felt relieved after the first phone call with Mike Klyszeiko from
Amcham Finland. Mike’s knowledge of the required actions was
reassuring. Mike was clear, logical and effective. He explained the
required actions, coached us and helped us to make it all happen.
Remarkable expertise!"
Tarja Keen, Chairman of the Board
Finnero Oy
© Cameron Venti
To learn more, contact Mike Klyszeiko (mike.klyszeiko.amcham.fi;
+358 45 140 4911) or visit our website at amcham.fi/launchpad-usa/
14OPPORTUNITIES
Innovation and R&D Efforts in High-Tech and Knowledge-Based Industries
Strengthening the Transatlantic Trade Relationship
Trade & Technology dialogue
Finnish Leadership in the context of the EU on Transatlantic Issues
Cleantech
Shift Towards Renewable Energy
Sustainable Consumption and Development
Transition to Climate Neutrality
Smart City Technology
Arctic Technologies
Economics
and Trade
Climate
and Energy
Opportunities
for U.S.-Finland
Cooperation
& Business
Digital Health Care
Digital Health Systems
Pharmaceuticals
Wellness & Care
EMR & Patient Monitoring
5G/6G
Bio Banks
Cybersecurity
Finland as a Testbed
Age of AI
Medical Devices
DSA & DMA
Global Digital Economy
Quantum Technologies
Cloud Computing
SaaS, Iaas and Paas Solutions; Software and Consulting Services
15THE
FINLAND SUPPLEMENT TO THE
TRANSATLANTIC ECONOMY 2021
THE
FINLAND SUPPLEMENT TO THE
TRANSATLANTIC ECONOMY 2021
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