Forecast for the Finnish economy : Economy growing in the shadow of the virus

Abstract

The Finnish economy has made a quick recovery from the steep downturn caused by the COVID-19 crisis. Although the outlook remains overshadowed by the pandemic, Finland’s economy is forecast to grow by 3.5% in 2021 and by 2.6% in 2022. Supply bottlenecks and high raw material prices are, however, blunting growth in the economy and fuelling inflation. Growth will slow to 1.3% by 2024, reflecting the muted longer-term growth potential of Finland’s ageing economy. Economic growth may be weaker than forecast if global supply-side disruptions persist or the pandemic worsens.