HELSINKI, June 30 (Xinhua) -- Finland's share of global goods exports has more than halved over the past two decades, with the country losing ground particularly in resource-based and high-technology industrial products, the Research Institute of the Finnish Economy (Etla) said on Tuesday.
According to research published by Etla, Finland's share of the total value of world goods exports fell from 0.72 percent in 2002 to 0.35 percent in 2024.
The decline was particularly visible in forest industry products and mobile phones, two important areas for Finnish exports. Etla said Finland's global market share has shrunk especially in resource-based and high-technology industrial products.
Etla said Finland's decline reflects two main factors: Finnish exporters have lost ground in global competition, and the country's export product structure has not been well aligned with areas of faster-growing global demand.
While many older industrialized economies have lost market share to emerging economies, they are able to offset the decline by exporting products for which global demand has grown, Etla said, noting that however, Finland and Italy have been exceptions, as their export product structures have not matched the development of global demand.
Ville Kaitila, a senior researcher at Etla, told Xinhua that Finland's export products and destination-market structures supported export development until 2008, but both turned negative after that.
"Finland's goods export performance weakened sharply until 2012, after which the decline leveled off. Now, however, the decline has begun again," Kaitila said, citing the near-total halt in exports to Russia and special factors that weighed on goods exports in 2024.
To improve the situation, Etla said Finland needs renewal among companies and in the products they produce, as well as a stronger understanding of global markets and their development.
Foreign trade is especially important for a small open economy such as Finland, Etla said, adding that global demand is growing much faster than domestic demand and that stronger export potential is therefore important for Finland's economic growth.
