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Finland faces short recession in 2023

IANS
Updated: September 15th, 2023, 15:26 IST
in Business, International
0
Finland

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Helsinki: Finland’s economy is expected to contract by 0.3 per cent this year and to grow by 0.8 per cent in 2024, non-profit institute ETLA Economic Research said in a survey.

The country’s economy is projected to contract this year because investments decrease and inventories are unloaded, but also because private consumption decreases, Xinhua news agency quoted the survey as saying.

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Housing construction and public investments will shrink sharply, while public consumption will increase, it added.

ETLA Managing Director Aki Kangasharju called for a greater emphasis on immigration and improvements in productivity.

He emphasised the need for proper incentives in the green energy sector and noted that while the Finland’s employment level is already high, a significant portion of the jobs is part-time, and this does not generate significant tax revenue.

Finland’s exports are expected to decline by 0.3 per cent this year. Imports will decrease more than that (-3.4 per cent), so net exports will support economic growth in the period ahead.

“The positive development in the global economy is primarily coming from developing countries, with China displaying a growth rate of 4.5 per cent. However, in Finland’s key export markets, such as Sweden and Germany, we expect negative growth this year,” said Paivi Puoti, ETLA’s head of forecasting.

Tags: FinlandRecession
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