A TIDE of industrial investments is expected in Finland, indicates a survey by the Confederation of Finnish Industries (EK).
EK on Tuesday reported that its latest investment survey suggests that industrial investments will increase at a brisk clip this year, by 16 per cent to 8.6 billion euros. What is particularly positive is that businesses expect increases in both fixed investments and research and development investments.
Terhi Heikkonen, a senior advisor at EK, revealed in a press release that fixed investments are set to pick up especially in the food and forest industries.
“The growth in research and development investments will be the strongest in the chemical industry, although also technology and forest industries are clearly increasing spending in research and development,” she said.
The survey reveals that fixed investments are expected to rise by 19 per cent to 5.2 billion euros and research and development investments by 12 per cent to 3.4 billion euros.
EK pointed out that the investment rate in industry is thereby set to reach its highest level in a decade, of roughly 24 per cent. Although the level is higher than in the past couple of years in Finland, it remains low to medium in international comparison.
“The investment bang this year will thrust Finland closer to its peer countries. The investment rate here has been crawling for years, so the jump now taking place will not rectify the situation. A permanent increase in the rate is needed to really start paving the way of growth,” said Sami Pakarinen, the chief economist at EK.
The survey is part of harmonised surveys carried out in different sectors of the economies by the European Commission. The 285 companies that responded employ over 130,000 people in Finland.
Aleksi Teivainen – HT