Finland’s economy lives on exports. But did you know that services account for as much as one-third of the gross value of Finland’s exports? The possibilities of providing services across borders have reached an all-new level through digitalization. The traditional industrial exports still account for two-thirds of our exports, but the proportion of service exports increased last year to one-third.
Measured by domestic value added, the significance of foreign trade with services is even greater.
Measured by domestic value added, the significance of foreign trade with services is even greater. According to the VATT Institute for Economic Research, service exports had as much as 72% domestic value added in gross exports. The export of goods had 56% domestic value added. The difference is caused mostly by the fact that the value of components and raw materials purchased from abroad account for a significant proportion of the value of the exported industrial goods. We can, therefore, say that Finland’s economy lives increasingly on service exports.
How are service exports divided among different sectors? More than one-third of Finland’s service exports comprise IT services, e.g. software and games, among others. The second largest group, accounting for 20% of service exports, comprises business services which include designing of marketing communication. The pandemic posed a threat to many sectors, but for many it has also created opportunities. Designing marketing, developing games, and consultation can all be done remotely for the most part; restrictions on mobility and congregating with others do not necessarily curtail growth in those areas. These last months have demonstrated that remote work has actually increased productivity in the service business.
This year, we have not only served our clients on the domestic front, but also those in Sweden, Ireland, Australia, China, Germany, Russia, the United States and Canada, among others.
An increasingly larger part of Hansdotter’s business, too, has stretched across borders. This year, we have not only served our clients on the domestic front, but also those in Sweden, Ireland, Australia, China, Germany, Russia, the United States and Canada, among others. What’s more, many of our domestic clients’ businesses are export-driven, and we are able to help them in their international business efforts every day. So, how can we help you?