The European Commission has raised its forecast for Finland’s economic growth. On Thursday, the Commission forecast that Finland’s GDP will grow by 3.4% this year from its previous estimate of 2.7%.
The EU leader estimates that economic growth will continue in Finland next year, but at a slightly slower pace. According to the latest forecast, the country’s GDP will grow by 2.8 percent in 2022.
In the medium term, Finland’s economic growth is expected to withdraw primarily from growth in domestic demand and increased investment.
The Commission forecasts that employment in Finland will continue to improve to pre-crisis levels.
Finland overcame the crisis in the euro area on average better
In most of the other 18 eurozone countries, growth rates are currently better than in Finland – compared to last year, when Finland survived the economic shock caused by the crisis much better than the regional average.
Overall, the Commission said the eurozone economy was recovering faster than expected. It again raised its growth forecast in the bloc to 5 per cent this year, with last summer’s forecast at 4.8 per cent.
However, the European Economic Commissioner Paolo Gentiloni warned that the recovery is fragile.
"There are three main threats associated with this positive picture: a significant increase in Covid cases, most acute in areas with relatively low vaccinations; rising inflation, largely due to rising energy prices; and supply chain disruptions affecting a wide range of sectors," he said Thursday in Brussels.
The Commission forecasts growth in the euro area of 4.3% next year and a slowdown to 2.4% in 2023. At the same time, it forecast inflation in the euro area to accelerate to 2.4% this year and 2.2% next year.
Source: The Nordic Page