Country Risk Rating

A3
Changes in generally good but somewhat volatile political and economic environment can affect corporate payment behavior. A basically secure business environment can nonetheless give rise to occasional difficulties for companies. Corporate default probability is quite acceptable on average. - Source: Coface
A1A2A3A4BCDEVery Low RiskAcceptable RiskVery High Risk

Business Climate Rating

A1
The business environment is very good. Corporate financial information is available and reliable. Debt collection is efficient. Institutional quality is very good. Intercompany transactions run smoothly in environments rated A1.
A1A2A3A4BCDEVery Low RiskAcceptable RiskVery High Risk

Strengths

  • Favourable business climate, strong institutions, and high standard of living
  • Strong ICT-sector and domestic supply of commodities
  • Diversified energy production with nuclear, biomass, hydro and wind power production
  • Finland is part of the eurozone and became a member of NATO in April 2023

Weaknesses

  • Highly vulnerable to international economic conditions
  • Direct neighbour of Russia; the two countries share a border which is around 1,340 km long)
  • Dependence of the Finnish banking on the Swedish and Danish financial sectors
  • Labour market inflexibility leads to relatively high structural unemployment and shortages in certain areas and sectors.

Current Trends

Source:

Coface (01/2024)
Finland