Economic recovery will be delayed : interim forecast : September 2023

Abstract

The Finnish economy is in mild recession. The rise in prices and interest rates, and weaker export demand, are weighing on the economy, and recovery from the recession will be slow. The favourable trend in employment is coming to a halt. Domestic inflation is slowing rapidly. However, the economic recovery will take longer than previously estimated. Risks surrounding the global economy have increased, and if growth falls short of forecasts, this would be also affect domestic output. The slowdown in residential construction could also cause longer term problems.