The effect that BREXIT will have on Finnish economy

Britain voted in June in favor of leaving the EU. Theresa May the Prime Minister of Great Britain announced to the press that Britain is going to start the negotiations for the leave before the end of March 2017.

How will Brexit affect Finnish economy? A great deal of future scenarios have been made by professionals since the Brexit vote came out. Finnish economy is in comparison to other EU countries greatly dependent of domestic markets. Remarkable so of countries outside the EU. According to Hypo (a Finnish credit institution) Finland’s economy will be even more dependent from domestic markets in the future.brexit-hyva-photo

(http://www.pymnts.com/news/b2b-payments/2016/brexit-corporates-small-business-fx-currency-cross-border-trade/)

Finnish economy will at least be affected indirectly from the travel, online shops, moving abroad and vacancies from Britain’s work markets. According to Helsingin Sanomat pound value towards euro has been calculated to decrease. The possible drop in pound value would give Finns a possibility to shop and travel less expensively in Britain or at Britain’s online stores. So far Finns have been able to move freely in EU. After Britain’s leave, depending on the settlement Britain will make with EU, free movement will be affected – with the settlement also having an impact towards the vacancies from Britain’s work market as well as studying abroad.

The Finnish export will also be impacted by Britain’s leave. According to Helsingin Sanomat Britain was Finland’s sixth largest export country last year. With taking total 5.2 % of the whole export. With Britain’s exit the most effects to Finland will not only be from Britain’s export markets but the affect that the exit will have to the world economy and in that way Finland exports recovery from the global recession.

The harder the hit from Brexit is to the world’s economy the more will Finland plunge in relation to other countries. The true impacts can’t be measured before the leave but one thing that all of us know for sure about Brexit is that no country has ever left EU it will affect the whole union in a way that can’t be predicted – we will just have to wait and see.

Sources:
Niskanen Jyrki. Niskanen Mervi. Yritysrahoitus. 2016. Edita. s.473.
Aalto Jari. Vuokko Aromaa. Haapala Pertti. Hentilä Seppo. Nieminen Jaana. Kaikkien aikojen historia. Edita .2011. s.180.
Esa Koivuranta. Hypo arvioi Brexitin vaikutuksia. 7.7.2016. Yle uutiset. http://yle.fi/uutiset/3-9007102 luettu 12.10.2016
Heidi Huotilainen. Näin Brexit voi vaikuttaa suomalaisten arkeen. 24.6.2016. Helsingin Sanomat. http://www.hs.fi/talous/a1466735575209  luettu 12.10.2016
Juhana Rossi. Analyytikko: Brexit myllertää tänään markkinoita ja uhkaa Suomen vientiä. 24.6.2016. Helsingin Sanomat. http://www.hs.fi/talous/a1466735164944 Luettu 13.10.2016
The Brexit already takes its toll. Pymnts. 27.6.2016. http://www.pymnts.com/news/b2b-payments/2016/brexit-corporates-small-business-fx-currency-cross-border-trade/ Luettu 2.12.2016.
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2 Responses to The effect that BREXIT will have on Finnish economy

  1. juttaao says:

    It’s going to be very interesting to see what will happen in the future. Great topic!

  2. roopevir says:

    Great topic! Just have to wait and see what happens…

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