The Finnish economy is set to remain the worst performer in the euro area this year, predicts Etla Economic Research. Finland’s GDP will contract by 0.2 per cent this year, virtually matching last year’s level. Next year GDP will grow by 1.4 per cent. International demand will not be enough to drive export growth this year. Investment will continue to contract. Unemployment will rise this year but fall next year. For the first time in a long time, the working age population in Finland is growing.
Summary:
· Finland’s GDP will contract by 0.2% this year, virtually unchanged from last year. Although GDP already showed a slight upturn early in the year, growth will remain subdued for the rest of the year. GDP will grow by 1.4% next year and 1.3% in 2026.
· International demand will not be sufficient to drive export growth this year.
· No single demand item will grow significantly this year. Investment will continue to contract, although public investment will offset the weakness of private investment. Investment growth will only really take off next year.
· …read more
Source:: ETLA