Forecast for the Finnish economy : Russia’s war in Ukraine is stifling Finland’s economic recovery

Abstract

Russia’s war in Ukraine is weakening the outlook for the Finnish economy and pushing up inflation. Foreign trade with Russia is collapsing as a result of the war, and higher uncertainty and inflation are undermining the prospects for consumption and investment. Finland’s economy was growing well before the war started, and this will serve as a good foundation for the year’s growth overall. The Finnish economy is projected to grow by 1.7% in 2022, but growth will slow to 0.5% in 2023 due to the impacts of the war. Growth will then pick up to 1.5% in 2024, as the difficulties in the global economy subside and inflation moderates.