The recovery post Covid-19 will be slowed by the past loss of competitiveness


LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD276.74bn (World ranking 42, World Bank 2018)
Population 5.52mn (World ranking 115, World Bank 2018)
Form of state Republic
Head of government Sanna Marin (Prime Minister)
Next elections 2023, legislative
  • Strong business environment
  • High R&D spending
  • Low fiscal deficit
  • Contained public debt
  • Improving competitiveness
  • High-skilled workforce
  • Robust welfare state
  • Exposure to Russia still high
  • Rapidly deteriorating current account balance
  • High private debt, notably linked to the housing loans
  • High labor costs
  • Weak demographics

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Germany 16%
16% Germany
Sweden 11%
14% Russia
Netherlands 7%
11% Sweden
United States 7%
7% China
China 6%
5% Netherlands

Trade structure by product

(% of total)

Exports Rank Imports
Paper and paperboard 12%
9% Petroleum oils, oils from bitumin. materials, crude
Petroleum oils or bituminous minerals 9%
5% Motor vehicles
Motor vehicles 5%
4% Petroleum oils or bituminous minerals
Flat-rolled products of alloy steel 5%
3% Parts & accessories of vehicles
Pulp and waste paper 5%
3% Automatic data processing machines
The payment behavior of domestic companies is excellent with payments taking place in 25 days on average, and the EU framework provides reliable tools when it comes to late payment.​

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

Legal action for undisputed debt is usually resolved quickly (between 3 to 6 months), however, when the debtor’s assets are difficult to locate, or the debt is disputed, it can become time consuming.

Although insolvency law aims at rescuing companies facing financial difficulties in order to increase repayment possibilities, most reconstruction procedures spread over years (or fail) thus leaving the creditors with no or very few dividends, while liquidation procedures leave very low recovery chances to unsecured creditors.


Contact Euler Hermes

Economic Research Team