The Bank of Finland is improving its GDP forecast, still waiting for a recession

The Bank of Finland is improving its GDP forecast, still waiting for a recession

The Bank of Finland has improved its forecast for the Finnish economy by almost one percentage point of GDP, it announced on Tuesday – but still expects post-crisis growth to be slow.

The bank had announced in September that it was expected to reduce GDP by 4.7% next year. It has now changed to 3.8 percent in a new forecast released on Tuesday in Helsinki.

Olli Rehn, the bank ‘s chief executive, said at a press conference on Tuesday that Finland needs to balance various concerns in steering the economy through a pandemic.

"My main message is that in decision-making and economic policy, we must now be able to do two things: tackle the acute health and economic crisis and, on the other hand, solve long-term economic and employment problems;" said Rehn.

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The bank says the winter is still financially difficult, but coronavirus vaccines offer some hope that the crisis will end in Finland and globally next year.

According to the bank, the recession caused by the coronavirus had not been as severe in Finland as in other European countries, but the winter would still be difficult.

"The interest rate crisis leaves a lasting mark on the Finnish economy, but the recovery seems to be slightly faster than the recovery after the financial crisis," said the bank’s forecast manager, Meri Ostbaum.

Source: The Nordic Page

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