How Corona pandemic affects industries in Finland
Finland is one of the European countries whose industries have been affected badly by the Covid-19 pandemic despite have handled the Corona virus outbreak efficiently. The leaders and the patriotic people living in the country have been committed towards eradication of the surging cases of infections in the country. The government of Finland has extended the restrictions which it had put in place to December 13th, 2020. The deadline extension means that more economic slowdown is foresighted. Therefore, negatively affecting the major industries of the country. Finland is considered the exemplar for good infectious diseases response in light of the way the country handled Covid-19. The country has so far reported the positive cases of approximately twenty-five thousand people which is a considerably low number. Despite having a good strategic planning and low number of Covid affected people the pandemic has laid quite adverse impacts on different industries in Finland in the many ways.
There has been an increase in the number of online transactions. The Central Bank of Finland revealed that the use of cash is reduced by approximately 15% with most people preferring cashless transactions. The increase in the number of online transactions means that industries have to center their activities on the internet and social media platforms. This method has been used more so for clothing, hotel and catering industries whereby the marketing and sale of commodities have switched to an online concentrated method.
Just like other economic activities online gambling is also affected badly. The reason of quoting this as an economic activity is that gambling is legal in Finland and in fact there is a legislation and gambling authorities. Though there is a rise in the online casinos’ business due to the social-distancing and SOPs as well as the increasing trend of online transaction, the overall economic activities from this industry is also brought down. Reasons are low purchasing powers of the people and the increased tension in their behavior that has led to online gambling problems.
The government of Finland was among the first governments in Europe to impose a mandatory lockdown to regulate the spread of the virus in March, 2020. One of the effect of the lockdown was that physical socialization was reduced considerably. There was a reduction in the number of workers who could be in the physical locations of industries, therefore necessitating the reduction of workforces. Additionally, a lockdown meant that industries could not transport their merchandise with ease that resulted in decreased sales. The government’s response to the effects of the lockdown on businesses was offering a support package totaling 15 billion for industries affected by the economic slowdown resulting from the pandemic outbreak.
Lastly, Finland’s response was particularly good because it cushioned the industries from the average economic fall of the EU. The average slump of the EU is 11% but Finland has only experienced a 6.4% fall.