BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/09
The structure of exports has scarcely changed in recent years. Some 34 % of exports last year consisted of machinery and equipment, 26 % of chemical products and 14 % of wood and paper products. Foodstuffs fell slightly to 4 %. In 2009, the share of machinery, equipment and transport vehicles contracted sharply, largely on the collapse of re-exports of mobile phones and passenger cars, which have not recovered much since. Finnish customs says re-exports (i.e. exports of goods manufactured in a third country) accounted for 22 % of Finland’s exports to Russia in 2014. Re-exports currently include e.g. some machinery and pharmaceuticals.
The structure of imports has also showed little change. Last year mineral fuels (mainly crude oil) still accounted for over 70 % of imports, so the fall in imports was largely due to lower oil prices. Chemical products were 13 % of imports, wood products 6 % and metal products 3 %.
Russian tourism in Finland also declined sharply last year. Slightly over 9 million people crossed Finland’s eastern border, a decline of about 20 % from 2014. Tax-free sales fell roughly the same measured by the number of purchases. Overnight stays of Russian travellers declined by over 40 %. Nevertheless, Russians were still the single largest foreign tourist group visiting Finland last year.
Transit transport from Finland to Russia contracted about 40 % last year. It was the fourth consecutive year of contraction and the value of transit freight was just €8 billion (down from €30 billion in peak years).