EK Investment Survey 19.1.2011

Investments expected to grow modestly in 2011Although industrial investments in Finland began to grow again last year, the level remained quite low. This is revealed in the latest EK Investment Survey.

According to Statistics Finland, the amount of fixed investments in Finland totalled just under 3.7 billion euros in 2009. According to the Investment Survey, investments increased by just over 10 percent in 2010. The same rate of growth is expected also this year. 

The combined investments by the manufacturing industry and energy sector are expected to amount to approximately 6.4 billion euros this year.

Almost half of all investments are being allocated to
replace old production capacityThe cautious climate is reflected in the high proportion of investments to replace old production capacity. As much as 45 percent of investments planned for this year will be replacement investments, whereas expansion investments will account for less than a 25 percent.

According to the survey, investments contracted last year among medium-sized and large companies but grew among small enterprises. This year investments by small enterprises are expected to decrease slightly, whereas a turnaround for the better is expected among medium-sized and large companies.

Investment ratio has remained quite stableThe investment ratio, i.e. the ratio between investments and industrial added value, has remained relatively stable throughout the economic crisis, as both investments and industrial added value have decreased significantly. The investment ratio of Finnish industrial enterprises is quite close to the Western European average.

Foreign investments at their lowest level in the past decadeForeign investments by the Finnish manufacturing industry in 2009 were in clear decline, and last year they continued to fall somewhat.  According to the Investment Survey, investments abroad amounted to approximately 1.5 billion euros. This is the lowest level in the past decade.

Despite the growth of the developing markets, the EU and North America accounted for approximately two thirds of investments.

EK Investment SurveyThe EK Investment Survey is part of the EU’s harmonised business trend survey system. A total of 255 industrial enterprises participated in the survey. The investments made by participating companies account for approximately 80 percent of all Finnish manufacturing industry investments. The figures used in the Investment Survey have been adjusted upwards to correspond to the recorded investments for the entire economy.