Etla Economic Research predicts that economic growth will remain stagnant for the next few years. Etla has lowered its GDP forecast from before and now estimates that Finland’s gross domestic product will grow by a good percent next year. This year, GDP will shrink by 0.3 per cent. Finland already drifted into a technical recession at the end of last year, and economic growth will continue to be cut by inflation, the tightening of monetary policy, and Russia’s war of aggression with its indirect effects. Private consumption and investments will contract this year, but the employment effects will remain moderate.
Summary
Finland’s economic growth will contract by 0.3 per cent this year. Finland entered a technical recession already at the end of last year. Next year, the growth of Finland’s GDP will be limited to 1.2 per cent. Inflation, the tightening of monetary policy and the indirect effects of Russia’s war of aggression will cut into growth.
The economy will shrink this year especially as private consumption and investments decrease. Offloading of existing inventories also has a negative effect on growth. On the other hand, the effect of net exports is positive. Next year, all domestic demand items will grow, but inventories will …read more
Source:: ETLA