Finnish economy expects a late 2024 rebound after a long recession

Posted on March 8, 2024   |  

Finnish GDP contracted more than expected in 2023, extending the recession into early 2024.

However, there's optimism for a recovery later in the year, driven by lower inflation, interest rates, and increased export demand.

Finland's GDP is predicted to decrease by 0.4% this year, a slightly more negative outlook than previously forecasted.

The first quarter of 2024 may be affected by strikes, leading to weaker performance.

Despite the ongoing recession, there's hope for growth driven by increased private consumption and exports due to lower inflation.

Economic uncertainty may cause cautious spending and higher savings.

Finland's strong labor markets maintain purchasing power, with companies facing labor shortages and witnessing faster wage increases.