HELSINKI: Finland’s economy is set to grow by one percent next year, according to Nordea’s latest forecast. The firm’s Economic Outlook, which was published on Wednesday, shows an upgraded forecast for the economy following several positive announcements in recent weeks. In recent weeks it’s been announced that a car plant in Uusikaupunki is to ramp up production of a new Mercedes model, and the Turku Meyer shipyard won a major contract, among other major investment decisions.
The bank warns, however, that the uptick in exports is not yet the basis for a sustained boost to the economy. “It has been a while since the Finnish economic data were as positive as they are now,” reads the Nordea statement. “The drivers of domestic demand – construction investment and private consumption – are the unchallenged engines of the economy, but slower growth is in the cards for both drivers already in 2017. On the bright side, passenger cars alone provide a healthy but temporary boost to goods exports next year.” In 2018 Finnish GDP growth will drop back to 0.8 percent, according to Nordea’s forecast, while the firm says that in 2017 there will be a boost to exports not seen since 2011. The long-term outlook for Finland’s economy, according to Nordea, depends on further economic reforms or a major investment programme.
