The Finnish economy continues to recover despite the omicron, OP’s economists believe

The Finnish economy continues to recover despite the omicron, OP's economists believe

The form will move to the next two years and increase the growth rate to 1.7 percent in 2023 and 1.4 percent in 2024.

“The waves of coronavirus infections have time and time again made the economy smaller. It is likely that this time too, the omicron wave will guide the rhythm of economic development rather than causing a change in the big picture. said Reijo HeiskanenOP Financial Group’s Chief Economist.

The economy is expected to grow extensively both this year and next, driven by service exports, industrial investment and private consumption.

“Most of the stable economic development is due to the recovery from the recession caused by the coronavirus pandemic in the service sectors. However, it is gratifying that industrial investment in enlargement is picking up. It can also raise long-term growth prospects, ”he said.

Although inflation accelerated from the energy price spikes at the end of last year in Finland as well, it remained among the lowest in the euro area. OP Financial Group sees that although inflation is already at its peak, it will remain above 2 per cent this year, averaging 2.7 per cent, but will fall slightly below 2 per cent in 2023.

The employment situation is forecast to improve further. The unemployment rate will fall to 6.3 per cent next year, the lowest level since 1990. However, public finances remain in deficit.

“The economy is exceptionally unreasonable. The general mood is full of uncertainty and some companies are struggling significantly due to the coronavirus pandemic, but in light of the indicators of general economic development, we see the biggest upswing in 2022-2023 since the late 1920s,” Heiskanen said.

Aleksi Teivainen – HT

Source: The Nordic Page

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