Finland: Economic growth forecast for 2014

Finland is due for economic contraction this year and weak growth in 2014, according to the Research Institute of the Finnish Economy, Etla.

The new outlook represents a downgrade of the institute’s view of the Finnish economy: up until March of this year Etla had been forecasting growth of 0.3 percent this year. That has now changed to a drop of 0.4 percent in GDP.

Next year should be a little rosier, according to Etla, with 1.6 percent growth forecast. In 2015 Finland is set to experience 2.7 percent growth, if the institute’s prediction is fulfilled.

Export industries’ fortunes will fluctuate, with Etla forecasting a fall of just over one percent in exports this year followed by a 3.5 percent spike in 2014. Etla says the crisis in the Eurozone appears to be ending.

The institute sees little good news in the labour market, with the unemployment percentage expected to remain over eight percent this and next year. Etla expects consumer prices to rise by 1.7 percent.