Finland Times

 

Vuosaari Harbour in Helsinki on 13 November 2015. Photo – Lehtikuva.

The Finnish economy has tapered off now for many years and Nordea predicts that Finland’s economy in the coming years will see only marginal growth.

 

Next year, Nordea sees an insignificant chance of improvement, if the collapse of the social contract does not lead to strikes, which would destroy any rise in the economy.

 

Nordea predicts that Finland will suffer a stunted growth of 0.5 per cent next year. For 2017, Nordea predicts 0.7 per cent growth. Compared to the forecast offered in the autumn, this latest forecast has improved slightly for this year and for 2017.

 

Nordea Bank chief economist Aki Kangasharju. File Photo Lehtikuva.

According to Nordea, internal devaluation has begun in Finland. This means that the Finnish cost levels, for consumer and producer prices, are falling slightly compared to the rest of the eurozone.

 

“Traditional cost recovery will not work now. We should maintain rising costs and halt the internal devaluation. The solution lies within reforms of structures and cost level pressures in the eurozone. Europe’s “sick man” needs a lifestyle overhaul,” remarked Nordea Chief Economist Aki Kangasharju.