BOFIT Viikkokatsaus / BOFIT Weekly 2017/36

The value of Finnish goods exports to Russia inthe second quarter rose 13 % y-o-y. Export growth faded in the spring, but picked up steam in May and June. For the first half of 2017, goods exports jumped by nearly 20 % y-o-y. Export gains were seen in almost all of major goods categories, but highest growth was seen in exports of machinery and equipment. Exports were still well off their peak levels of recent years. Russia accounts for just over 5 % of Finland's goods exports.

After falling for several years in a row, services exports to Russia have also begun to recover this year. The value of services exports was up by nearly 9 % y-o-y in 1Q17. Growth of travel service exports seems to have continued also in the second quarter, with overnight stays of Russians in Finnish inns and hotels up by over 20 %.

The value of goods imports from Russia rose by 27 % y-o-y in the second quarter. The increase largely reflected higher oil prices. Import growth slowed down notably from the exceptional peak at the start of the year which was largely due to a one-time delivery of gas pipelines. In 1H17, Russia was Finland's second-largest import market after Germany, with an over 14 % share.