Sunday October 01, 2023
Finland faces short recession in 2023: ETLA
Published : 15 Sep 2023, 02:33
Finland's economy is expected to contract by 0.3 percent this year and to grow by 0.8 percent in 2024, the private, non-profit institute ETLA Economic Research said in a survey published on Thursday, reported Xinhua.
The country's economy is projected to contract this year because investments decrease and inventories are unloaded, but also because private consumption decreases.
Housing construction and public investments will shrink sharply, while public consumption will increase, the survey said.
ETLA Managing Director Aki Kangasharju, speaking at a press conference, called for a greater emphasis on immigration and improvements in productivity.
He emphasized 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 percent this year. Imports will decrease more than that (-3.4 percent), 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 percent. However, in Finland's key export markets, such as Sweden and Germany, we expect negative growth this year," said Päivi Puoti, ETLA's head of forecasting.