Finnish analysts hail China’s economic growth in the first half of this year
Finnish analyst Ilkka Korhonen welcomes reports on China’s economic growth in the first half of this year and to local business daily Kauppalehti, he noted that Finnish companies operating in China have benefited from this positive development.
Ilkka Korhonen is head of research at the Bank of Finland’s Institute for Emerging Economies (BOFIT) and said that the growth of the Chinese economy in the first half of 2021 has been very rapid. If the same growth rate continues throughout this year, China could meet its official goal of growing gross domestic product (GDP) in real terms, he said.
According to China’s National Bureau of Statistics (NBS), the country’s GDP grew 12.7% year-on-year in the first half of 2021 as the recovery continues to be firm.
Speaking on growth, Timo Hirvonen, chief economist at Swedish bank Svenska Handelsbanken in Finland, said the growth figures matched expectations. The chief economist said the markets were worried about the development of domestic demand in China, especially in services. “But the data we now have indicates that the service sector developed well in the second quarter and that China’s industrial exports also performed well,” said Timo Hirvonen.
The local Finnish business daily Kauppalehti also spoke with Petri Vuorio, director of entrepreneurship, trade policy and European affairs at the Confederation of Finnish Industries (EK), who said that “2021 has been a banner year. For Finnish companies that operate locally in the Chinese market. He noted that Finland’s merchandise exports to China have increased this year by more than 20 percent, and that last year, Finnish food exports to China nearly doubled. China’s current focus on reducing emissions further improves the business prospects of related Finnish industries there.
Timo Vuori, senior executive and vice-president of the Finnish Chamber of Commerce, confirmed the positive assessment of Finnish companies in the Chinese market. Speaking on the matter, he said, “Trade policy risks must be identified, but at the same time, companies must be courageous to better take advantage of the opportunities offered by the Chinese market.” Despite the positive developments, Timo Vuori expressed concern about the prospects for air traffic and tourism between Finland and China.