Construction site in Rovaniemi
Photo by: Michael Mead

Economic trend report: moderate growth in turnover of Lapland’s businesses

After several years of strong economic growth, the development trend in Lapland continued to be moderately positive.

According to Lapland economic trend report published in June 2020, the combined turnover of businesses in Lapland in 2019 was EUR 14.1 billion, an increase of 0.4 percent compared to the previous year.

Industry accounted for almost half of the turnover in Lapland, but the turnover of both industry and mining decreased slightly from the previous year.

Business support services were growing strongly, as were the tourism industries. Construction, logistics and trade grew more moderately. The strong growth in business support services is likely to be explained in part by the fact that leased workforce for example in the tourism sector is registered under business support services.

Tourism business has shown growth

The turnover in tourism industries has been growing since 2015. In 2019, the turnover of accommodation and food service activities increased by more than 6 percent and the turnover of tourism services by almost 6 percent.

In all tourist centers in Lapland, the turnover has been increasing for the last four years. In 2019, the strongest growth was recorded in Rovaniemi and in Pyhä-Luosto. In the longer term, the fastest turnover growth has been in Saariselkä.

The coronavirus pandemic affects businesses

The coronavirus pandemic significantly changed global economic forecasts and the pandemic has also hit the Finnish and Lapland economies hard. According to the Ministry of Finance’s review, GDP would contract in 2020, but turn to moderate growth path in 2021 and 2022. Forecasting the development is exceptionally uncertain.

The results from survey by the Regional Association of Enterprises in Lapland gives some positive signs regarding the recovery. One third of the companies in Lapland estimate that business will return to a profitable level by autumn 2020, and almost two thirds during the next winter and spring.

Based on the data of Statistics Finland’s trend indicator service, the Lapland economic trend report was compiled in cooperation between the Regional Council of Lapland, Lapland Centre for Economic Development, Transport and the Environment (ELY), Lapland Chamber of Commerce, Regional Association of Enterprises in Lapland, Finnvera, Business Rovaniemi and Sea Lapland Development Centre.
Lapland economic trend report at Lapin Luotsi (at the moment the report only in Finnish).