The Finnish economy will grow 2.9% in 2021 and 3.0% in 2022. Growth will be bolstered by private consumption and the recovering export markets. Long-term growth will, however, be weak. In 2023, GDP growth will slow to 1.3%.
If households spend the savings accumulated during the pandemic quickly, economic growth could be much stronger than estimated in the forecast for the Finnish economy for 2021–2023.
The financial position of households and businesses has on average remained good through the crisis, with the exception of the service industries directly impacted by COVID-19. Support measures have weakened the public finances.
The long-term outlook for the Finnish economy is subdued by weak productivity, a low employment rate and an ageing population. These will limit the public finances’ ability to service debt.
The Finnish economy will grow 2.9% in 2021 and 3.0% in 2022. This fast pace of growth will, however, be only temporary, and in 2023, GDP growth will slow to 1.3%.
The vaccinations will ease the virus situation and at the same time stimulate economic growth. Households will be able to consume more freely once the pandemic eases. The economy is also growing elsewhere around the world and this will boost Finland’s exports.
