Global crises are tormenting the Finnish economy this year, and the weakened growth outlook in the euro area is weighing on trade.
For housing finance the specialized credit institution Hypo predicts that this year's economic growth in Finland will remain at zero, which is, however, an improvement from last year's 0.5 percent recession. According to Hypo, Finland's economic growth will accelerate to 2.0 percent next year.
Hypo estimates that global crises will torment the Finnish economy this year, and at the same time, the weakened growth outlook in the euro area will weigh on trade.
However, according to Hypo, there is also positive news from the economic sector this year, when inflation, i.e. the rise in consumer prices, subsides, interest rates fall and real wages improve.
According to Hypo's economic review, Finnish inflation will slow down to 2.0 percent this year from 6.3 percent last year. Next year, according to Hypo, inflation will remain at the same level of 2.0 percent.
According to Hypo, this year the construction industry is at its coolest since the 1990s, which is also reflected in employment. Finland's unemployment rate will rise to 8.0 percent from last year's 7.0 percent. Next year, the unemployment rate will drop to 7.5 percent.
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