Next year, industrial production will also turn to cautious growth, but construction will catch up to growth only from 2025 onwards.
Industrial production and construction will contract this year due to the weak situation in the export market and the rise in interest rates, estimates the research institute Etla in its industry overview.
On the other hand, service industries continue to grow slightly, which compensates for the situation. Among the service sectors, especially accommodation and catering, as well as real estate and business services, hold their ground.
All in all, Etla estimates that the Finnish economy will contract by 0.3 percent this year.
Service industries already make up almost 70 percent of the value added in the Finnish economy.
Yet The metal industry, which supported Finland’s economic situation last year, is in the red this year.
According to the forecast, the forest industry will shrink, measured by value added, for the second year in a row, and the decline will only deepen this year.
The development of the industry is weighed down by the paper industry, whose production has collapsed throughout Europe due to, among other things, high energy costs. The export prices of the paper industry rose to a record high last year, but have now already started to decline.
Etlan forecast manager Päivi Puonnin industrial production will turn to subtle growth next year when the global economy picks up.
“Nonetheless, decent growth is only expected in the forest industry, because in other industries the amount of production stagnates,” says Puonti in the press release.
Growth in construction is not expected until 2025.
Next year, the Finnish economy is predicted to grow by 1.2 percent.
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