HELSINKI, April 20 (Xinhua) -- The shifting global economic landscape poses a growing challenge to the small and open economies of the Nordic region, where international trade remains vital to growth and industrial production, according to a study published on Monday by the Research Institute of the Finnish Economy (ETLA).
While most Nordic goods imports still come from Europe and other Nordic countries, the study found that supply chain vulnerabilities remain a major concern, particularly in sectors reliant on imported intermediate goods and critical raw materials.
Imports of intermediate goods -- products used in the manufacture of other goods -- account for nearly half of total goods imports in the Nordic countries, the report said. The share is highest in Finland at 57 percent, while Denmark and Iceland have the lowest share, both at 42 percent.
Among the Nordic countries, Norway and Denmark were found to be more vulnerable to trade disruptions, while Sweden and Iceland were better positioned to withstand such shocks, according to the study.
The report also said imports of critical raw materials needed for the green and digital transition are highly concentrated, adding to supply risks across the region.
"When imports from a single region or supplier are disrupted in a crisis situation, it can be difficult to find new suppliers quickly," said Jyrki Ali-Yrkko, research director at ETLA. He said the current international environment highlighted the need for continuous monitoring of value chains.
Recent U.S. tariff hikes on steel and aluminium imports, along with long-standing European concerns over discriminatory elements in U.S. green subsidy policies, have underscored the pressures facing export-oriented Nordic economies, said the study.
The study, titled The Value Chains of Nordics -- Tracking Resilience and Vulnerabilities, was jointly conducted by ETLA, Statistics Denmark and other Nordic statistical offices, and financed by the Nordic Council of Ministers. ■
