Fitch Ratings, the global rating agency, has revised the outlook for Finland to negative from stable. The country’s rating has been affirmed at AAA. The reason behind that decision was weakening economic growth prospects due to a sharp fall in exports to Russia and the ageing population.
The country’s GDP contracted by 0.1% last year. According to Fitch, the GDP may rise by 0.5% this year. In October, Standard & Poor's cut its rating for Finland to AA+.
Economist at the Bank of Finland Heli Simola believes that the sanctions against Russia and food products embargo badly affected food exports to the country.
Heli Simola said their partners faced difficulties in funding owing to the sanctions. So, the ongoing situation influenced the demand for exports from Finland. Food exports to Russia were about 70 % down over the last months of 2014 compared to the same period of the previous year.
“This year, the growth of the Russian economy is slower than in 2014. It is going to have an impact on the exports from Finland to Russia,” the economist noted.
Timo Laukkanan, the expert at the Confederation of Finnish Industries EK, says the sanctions were imposed at the wrong time for the Finnish Republic when its labor market and industrial production were depressed.
