Russian economy perks up - Finnish export sector grows

Russian economic development is about to take a positive turn, which will be visible also in this year’s foreign trade, estimates Russia Expert Timo Laukkanen at the Confederation of Finnish Industries EK.
 
Russian gross national product contracted last year by eight percent, but already by the end of the year signs of better times appeared. The Russian Economic Development Ministry predicts that this year’s economic growth will be about 3 – 3.5 percent, with oil price at 70 dollars a barrel.

– If the economic growth estimate of the Russian Economic Development Ministry actualises, Russian imports will grow by 15 to 20 percent, says Laukkanen in Prima magazine.

Russia has maintained its position as an important trade partner despite the severe decline of trade. Last year Russia was Finland’s third biggest export destination after Germany and Sweden.

– What Russia needs are refined products, which are not manufactured sufficiently. For instance the exports of the Finnish chemical industry have succeeded relatively well while other sectors have experienced a very radical drop, Laukkanen notes.
 
According to Laukkanen’s estimation Finnish workshops will still have to wait for the launch of large investments in Russia. The recovery of the building branch has also been slow.

– Many sectors have accrued demand during the recession. Sooner or later the renewals of machines and equipment are bound to happen, and cars need new tyres. This alone brings at least some level of growth, marks Laukkanen.

The full article (in Finnish) is found in Prima 2/2010: www.digipaper.fi/prima/40845/?pgnumb=50

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