According to the forecast, Finnish exports will start to rise rapidly this year due to growing demand from Asia and the United States.
Next year, the Finnish economy is about to return to its old growth trajectory, despite the fact that the deteriorating coronavirus situation is delaying economic growth throughout Europe. This is what Pellervo Economic Research (PTT) estimates in its recent economic forecast.
PTT forecasts growth of 2.5 percent this year and 3.5 percent next year. However, the forecast is highly uncertain, according to PTT.
– The Finnish economy seems to be recovering quite well with household savings, export demand and a known stimulus. However, if rapid growth does not materialize by the summer at the latest, the previous growth trajectory will not be achieved without further recovery, says the Forecast Manager Janne Huovari in the bulletin.
According to PTT, raising employment requires a comprehensive package of measures.
With the worsening corona situation, European economies are lagging behind the United States and Asia, where, according to PTT, growth is very rapid this year.
According to the forecast, Finnish exports will start to rise rapidly already this year, as international demand in Asia and the United States grows.
“Strong indebtedness justified during economic crisis”
According to PTT, the economic pitfall caused by the coronavirus in Finland so far has been quite small compared to the rest of Europe.
According to the forecast, public finances will clearly balance in the wake of the koruna as the economy grows and the recovery declines. This year, the government deficit is estimated at nearly 10 billion, but next year it is expected to fall to just under 4 billion.
– During the economic crisis, strong indebtedness has been justified. However, resuscitation cannot be eternal. After the crisis, debt can only be used for measures to improve the conditions for economic growth, says PTT’s CEO Markus Lahtinen in the bulletin.
Purchasing power will not increase this year, according to PTT, as the projected rise in prices will eat up wage increases. However, household consumption is expected to grow, as household savings have increased by about EUR 6 billion from the previous year.
Source site www.is.fi