Finnish tech industry faces prolonged slump amid uncertain recovery: trade association

HELSINKI, Aug. 8 (Xinhua) — Demand in Finland’s technology industry, one of the country’s most important export sectors, remains weak, with no clear signs of an imminent recovery, according to the Technology Industries of Finland on Thursday.
In the first four months of 2024, the Finnish technology industry saw an 8 percent decrease in turnover compared to the same period last year, the trade association for Finnish technology industry sector said in a press release.
Despite some hopes for a winter recovery, the road ahead appears challenging.
“There has been no further significant weakening, so we can be cautiously optimistic that we’ve reached the lowest point of the cycle,” said Petteri Rautaporras, director and chief economist of the Technology Industries of Finland.
However, he warned that the recovery may be slower and more difficult than initially anticipated.
The downturn is reflected in the value of new orders, which fell by 1 percent in April-June compared to the previous quarter, and by 15 percent year-on-year. The total value of order books at the end of June was 3 percent lower than at the end of March and 12 percent lower than a year ago, marking the fifth consecutive quarter of decline.
In mechanical engineering, the largest subsector, the value of new orders dropped by 7 percent in the second quarter compared to the first, and by 26 percent compared to the same period in 2023.
Despite the grim figures, companies remain cautiously optimistic, bolstered by the recent interest rate cut and the anticipation of further reductions. However, Rautaporras advised that businesses prepare for a prolonged period of weak demand. ■