Eastern Finland and the Construction Sector Hit Hard by Economic Fallout from War
In the ongoing turbulence triggered by Russia’s invasion of Ukraine, Eastern Finland and the construction industry have emerged as key battlegrounds in the economic fallout. The impact is being keenly felt by small and medium-sized enterprises (SMEs) across the region, as highlighted by a recent survey from the Federation of Finnish Enterprises.
Conducted shortly after a notable meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky, the poll reveals a troubling landscape. More than 40 percent of the 1,175 SMEs surveyed reported a decline in order volumes over the past year, attributing this downturn to the persistent uncertainty stemming from the conflict.
Furthermore, nearly 30 percent indicated that the ramifications of the war have escalated, either to a significant degree or somewhat, since hostilities began. Interestingly, around 40 percent noted that the effects on their operations have remained relatively stable.
The construction sector, in particular, has borne the brunt of this economic strain, with reports from Eastern Finland showing some of the most acute impacts.
This survey, carried out by the research firm Verian in early October, underscores the challenges SMEs are grappling with as they navigate the precarious economic landscape.
In a related development, Finnish Defense Minister Antti Häkkänen (NCP) announced earlier this week that Finland will participate in NATO’s PURL (Prioritized Ukraine Requirements List) arms initiative, allowing for the acquisition of weapons for Ukraine from the United States. This move reflects Finland’s commitment to supporting Ukraine during these challenging times.