There are signs of light in the economy. According to Finnvera, now is a good time for companies to make growth investments, as skilled labor is readily available and investment costs may be lower than during a strong economic upswing. In the future, the reconstruction of Ukraine will intensify competition for markets, labor, and raw materials across Europe.
“Companies should seize the opportunity at the latest now, as economic growth has turned upward and we know that demand growth is a fact. The very best time to invest was yesterday, but today is still an excellent day,” says Finnvera’s CEO, Juuso Heinilä.
According to him, the economic outlook in early 2025 was better than the previous year, and Finnvera’s financing for SMEs and export projects increased. Between January and June, Finnvera granted EUR 0.6 billion in domestic loans and guarantees, and EUR 3.7 billion in export credit guarantees and special guarantees. The latter figure more than doubled compared to the year before.
Finnvera sees the current outlook as clearly more positive than a year ago. Large companies in various industries are preparing more export deals than last year. Companies have launched investments and significant growth projects, which is also reflected in Finnvera’s financing activities.
While geopolitics and trade tensions continue to create uncertainties, there are still many factors supporting investment decisions and entry into new export markets. For example, interest rates have dropped sharply, benefiting both companies and the wider economy, and skilled labor is currently widely available. However, this situation will not last, as the reconstruction of Ukraine will accelerate competition for labor across Europe.
“Markets are being redistributed now, and companies that act proactively will secure the best competitive position,” Heinilä says.
Growth in Nearby Markets, Opportunities for Companies
According to Finnvera, export potential exists both in distant markets and closer to home. Europe is waking up, and cooperation with Sweden is seen positively from a business perspective. Heinilä notes that while increased defense sector spending is in some ways unfortunate, it also represents a huge growth opportunity for companies that provide solutions for that sector.
“Seizing these opportunities also means that companies must have sufficient resources and capabilities to participate in tenders. For small companies, this encourages growth into larger players, while medium-sized and large companies need to sharpen their growth ambitions,” Heinilä says.
Traditionally, Finns have been somewhat cautious, and not all opportunities have been seized. Now, however, there are plenty of opportunities available, and Finnvera hopes that companies will have the courage to take advantage of them.
(Photo: Finnvera CEO Juuso Heinilä)