Not long after the Second World War Finland received massive economic support from the World Bank to rebuild an economy that was, at best, tottering. A loan that was granted to develop the country would later change its fate so wonderfully that today, Finland is among the five countries that are part of the World Bank group.
So strong has been Finland’s economy in the recent decades that together with the World Bank and other world governments is working closely to eradicate poverty in the developing world.
Whether it is large flat-rolled stainless steel, automobiles, refined petroleum and whatnot, Finnish exports dominate the Sauna-country’s economic growth. Furthermore, credit rating agencies such as S&P Global Ratings recognize the short-term rating for Finland as A-1+.
Two simple but meaningful words define the country’s economic outlook and global perception: stable outlook.
More importantly, with the recent appointment of Sanna Marin as the enigmatic nation’s Prime Minister, a landmark moment in 2019, Finland further gained prominence in the power corridors where often and at times, only men dominate discussion.
But having said all of that, where might Finland’s economy be next year? What could happen to the country described as the gateway to enjoy the Northern Lights, a land whose shining lights include Kimi Raikkonen?
For starters, it doesn’t appear as though what the future, i.e., 2023 has in store for Finland is exceedingly bright.
On the contrary, Finland ‘might’ be in a bit of a trouble. And while it makes absolutely no sense to press any panic button at the moment, since this is largely a developing story, whose efficacy still needs to be confirmed, what can be said right now is that the economically promising Finnish story might stall a touch in 2023.
So what is this all about and what could we expect in the imminent future, since if one were to take cognisance of the future, then only a quarter of a year remains for 2022 to end.
That told, the following inputs were taken from a story published on YLE (the Finnish news platform) and the facts published therewith don’t point to an exceedingly bright outlook as of now.
Here’s what you need to note:
Nordea has downgraded its prognosis for the Finnish economy for next year. The bank predicts that the Finnish economy will grow by 2.5 percent this year before grinding to a complete halt next year.
In May, the bank projected that the Finnish economy would grow by two percent this year and 1.5 percent next year.
Although the Finnish economy has fared better than expected at the beginning of the year, the outlook is now weakened by high inflation and rising interest rates, the European energy crisis and ongoing coronavirus measures in China.
Export industries are suffering from expensive energy as well as a decrease in demand as Europe’s economic development slows.
Consumer purchasing power is being undercut by high inflation and rising home loan interest rates. According to Nordea, consumer prices will rise about five percent faster than income this year.
Purchasing power is also set to decline as the energy crisis continues.
More on this story then as it develops further. Watch this space for more!