ETLA Economic Research forecasts 1 percent GDP growth for Finland this year and 1.5 percent growth for next year. Household purchasing power is growing, and consumption is expected to recover slowly this year. The unemployment rate already paints too bleak a picture of Finland’s economic outlook. Inflation will accelerate to nearly 2 percent this year. Achieving the deficit target under the “debt brake” also requires continued fiscal adjustment in Finland. A key risk to the forecast is the state of war in the Persian Gulf, which is not yet destroying growth but could freeze it if prolonged.
Etla’s forecast in summary:
Finland’s economic growth is strengthening, driven by investment and private consumption.
Etla forecasts that gross domestic product will grow by one percent this year and 1.5 percent next year. In 2028, GDP growth is expected to be 1.6 percent. Etla has lowered its growth forecast; previously, we estimated 1.4 percent growth for this year.
The war in Iran is driving up energy prices and slowing growth in Finland and the entire eurozone. Demand for Finnish exports is growing, but at a slower pace than in recent years. Etla forecasts that growth in goods exports will be 1.5 percent this year.
…read more
Source:: ETLA