Investor confidence in Finland as an investment destination has remained strong

Abstract

Finland’s country risk has remained low. Country risk reflects the likelihood that a sovereign state is unable or unwilling to fulfil its financial obligations. Growth in Finland’s government debt and Russia’s invasion of Ukraine have prompted questions about a possible increase in Finland’s country risk. The price of country risk in the financial markets rose slightly after Russia’s invasion of Ukraine in February 2022, but the rise remained very moderate. Nor have instrumentalised migration at Finland’s eastern border or damage to undersea cables and pipelines in the Baltic Sea increased Finland’s country risk. Stable institutions and efforts to reduce government debt, among other things, help keep country risk in check.