The trade balance showed a deficit of EUR 122 million in January, according to the international trade in goods statistics provided by Finnish Customs on Thursday.
The aggregated trade surplus by commodity group for metals increased compared to the previous year.
The trade surplus in products of both mechanical and chemical forest industry and of industrial machinery and equipment decreased.
The deficit increased for transport equipment and electrical machinery and equipment but decreased for ores and metal scrap and crude oil and refined petroleum products.
The value of Finnish exports of goods decreased by 8.5 per cent year-on-year in January. The value of Finnish exports was EUR 5.8 billion. Export volume decreased by 1.3 per cent, and export prices declined by 6.4 per cent year-on-year.
The value of imports decreased by 11.3 per cent in January to EUR 5.9 billion. Import prices declined by 4.1 per cent, and import volume decreased by 6.5 per cent compared to January 2023.
Change of export volume during the latest 12 months was minus 2.8 per cent (12 month moving average February 2023 – January 2024). The corresponding figure for import volume was minus 10.6 per cent.
The terms of trade declined in January compared to the corresponding month of 2023 as export prices declined more rapidly than import prices. The point figure in January was 97.6, while it was 99.9 in January 2023. The terms of trade declined from December 2023.
The value of exports of capital goods decreased by 6.4 per cent in January, and the value of exports of industrial supplies decreased by 8.8 per cent year-on-year. The value of exports of fuels and lubricants decreased by 22.9 percent. The value of exports of consumer goods increased by 18.4 percent and the value of exports of food and beverages by 7.8 percent. The value of exports of transport equipment and parts decreased by 25.3 per cent.
The value of imports of industrial supplies decreased by 19.4 per cent in January and the value of imports of capital goods by 6.0 per cent year-on-year. The value of imports of transportation equipment and their parts decreased by 2.8 percent. The value of imports of fuels and lubricants decreased by 18.7 percent. The value of imports of food and beverages increased by 7.0 percent, but imports of consumer goods decreased by 7.8 percent.
The value of exports to EU countries decreased by 7.1 percent and exports to outside the EU by 10.3 percent in January. Imports from EU countries fell by 6.0 percent and imports from outside the EU by 18.0 percent in January.
Earlier in this month, the preliminary statistics of Finnish Customs said that the trade balance was in deficit of EUR 95 million in January.
Source: www.dailyfinland.fi
It’s concerning to see the trade deficit increase in January, especially with the decline in both export volume and prices. The fluctuations in different commodity groups indicate a complex economic landscape that requires close monitoring and strategic planning.
Does the article mention any specific reasons for the deficit in the trade balance?
Yes, the article highlights that the deficit in the trade balance was influenced by the decrease in export prices, particularly in mechanical and chemical forest industry products and industrial machinery. Import prices also decreased, contributing to the overall deficit in January.
Does this deficit in the trade balance indicate potential economic challenges ahead for Finland? How might this impact the country’s overall economic stability?
While the deficit in the trade balance does pose some economic challenges for Finland, it is important to consider the broader context. Economic stability depends on various factors beyond just the trade balance, such as domestic consumption, investment, and global market conditions. Finland’s economy has shown resilience in the face of fluctuations in trade balances in the past, and policymakers are likely to take measures to address any potential impacts on stability.
It’s concerning to see such a significant deficit in the trade balance for January. The decrease in export value and volume, along with the decline in import prices, paints a challenging picture for the Finnish economy. Let’s hope for a turnaround in the coming months.
Does the article provide any insights into the impact of the trade deficit on the overall economy of Finland?
Yes, the trade deficit highlighted in the article can have significant implications for Finland’s economy. A trade deficit indicates that a country is buying more goods and services from foreign countries than it is selling, which can lead to a decrease in the country’s currency value and potential job losses in certain industries. It also puts pressure on the government to address trade imbalances through policy measures such as tariffs or trade agreements. Overall, a trade deficit can affect the balance of payments and overall economic stability.
Do the fluctuations in trade surplus and deficit indicate any specific economic trends for Finland in the upcoming months?
It’s concerning to see a trade balance deficit of EUR 122 million in January. The fluctuations in trade surplus and deficit for different commodity groups indicate a complex picture. The decrease in export value and volume is alarming, coupled with the decline in import prices and volume. The terms of trade decline is worrying as well. This raises questions about the overall economic outlook and calls for strategic measures to address the trade imbalance.
It’s concerning to see the trade balance showing a deficit of EUR 122 million in January. The fluctuations in various commodity groups signal potential challenges ahead. Let’s hope for a better outlook in the upcoming months.
Jan points out that a $122 million trade balance hole is definitely not the best kickoff. It’s concerning to see the deficit increase for certain product categories, while export and import values both decreased year-on-year in January.