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12 Mar 2020
Finland: GDP likely to contract in 2020 – Nordea
The Finnish economy was already in a fragile position before the coronavirus hit as the only projected growth driver for 2020 was household demand, supported by high employment and robust income growth.
Key quotes
“There is a clear risk that consumption growth will plummet due to the coronavirus outbreak. Currently, the number of infected remains low in Finland, but it is still likely to dent consumer confidence, reduce travelling and lead to people avoiding public places.”
“Finnish GDP is likely to contract in 2020. Both private consumption and investment will suffer.”
“Another worry is the weak public finances, as Finland is likely to breach the 60% public debt to GDP ratio set in the EU’s stability and growth pact. This further emphasises the need for more sustainable fiscal policy in the longer term.”