Forecast for the Finnish economy : Finnish economy set to slide into recession

Abstract

Growth in the Finnish economy for the full year 2022 will amount to 1.9%, following strong activity in the early part of the year. The high level of inflation has, however, eroded households’ purchasing power, and consumer confidence has slumped to a very low level. In 2023, the economy will slide into a mild recession and real GDP will contract by 0.5% in response to the energy crisis exacerbated by Russia’s war in Ukraine and the surge in the cost of living. The recession will, however, be fairly short-lived. Growth will rebound to 1.1% in 2024 as the headwinds to the economy subside. In 2025, Finnish real GDP will grow by 1.5%.