Economists: Finland drifting into recession
Finland’s drift into recession is becoming more likely, according to a survey of economists carried out by Yle. However, the majority of those asked believe the recession will be short-lived.
Economists consider the Finance Ministry’s forecast of a less than one percent increase in growth to be in the right direction.
Last week, Finance Minister Jutta Urpilainen said that growth should come in between zero and one percent. In June, the ministry forecast growth of 1.0 percent this year and 1.2 percent next year.
“The euro zone is now in recession, the world economy is slowing down and Finnish industrial exports are in trouble. These signs point to Finland also being in recession during the autumn,” observes Pasi Holm, Managing Director of Pellervo Economic Research PTT.
Yle asked nine Finnish economists from various think tanks, research bodies and banks for their view of the economic outlook.
In the opinion of Seija Ilmakunnas from the Labour Institute for Economic Research, a possible decline in economic growth will not be too deep.
“A drop into recession will only mean a slight deceleration of economic growth,” she assures.
Economists are also concerned about an upturn in redundancies and lay-offs. Pellervo Economic Research PTT estimates that job losses in the retail sector point to hard times ahead.
“More job cuts and redundancies are on the way,” warns Pasi Holm. He emphasizes that Finland’s economic fortunes are closely aligned to the eurozone economic crisis.
Yle enquired about economic prospects from other bodies including the Confederation of Finnish Industries (EK), blue collar union federation SAK, the Federation of Finnish Enterprises, the Research Institute of the Finnish Economy (ETLA), and leading banks.
Latest in: News
Talvivaara mine stains river orange
The mine has been involved in a string of environmental mishaps -- and PR fiascos -- for more than six months.
Moomin ceramics tempt shoplifters
Police say that housewares depicting the denizens of Moominvalley are in high demand -- including among thieves.
Finland ranks mid-table in EU beach cleanliness
Finland ranks among the EU’s top 10 countries when it comes to purity of bathing waters – but just barely.
April unemployment at 8.8%
The unemployment rate in Finland declined slightly in April to 8.8%, down from March, but still higher than a year previously.
Company exploiting foreign workers up for Helsinki contract
Work-safety inspections this year at about 20 small and medium-sized cleaning companies that employ immigrant workers have discovered problems at every firm checked. Yle has found that the City of Helsinki is considering contracting services from a company that was determined to have employment rules violations.
Spanish nurses leaving Vaasa
Five of eight Spanish nurses recruited to work in Vaasa's city hospital have decided to quit the jobs they took up in October and leave the country. The reasons they cite include the high cost of living, the cold climate, and the difficulty of the Finnish language.
Toxic spill in Helsinki's Mätäjoki River
A chemical discharge into Helsinki's Mätäjoki River has killed fish and possibly wiped out years of efforts to revive spawning grounds for endangered species.
Sikh bus driver fights for right to wear turban
Managing diversity in Finnish workplaces is raising new issues for employers, unions and workers themselves. One Sikh bus driver in Vantaa is currently fighting to set a precedent allowing him to wear a turban.
Veolia drivers to return to work
Bus drivers working for the Veolia company will return to work on Tuesday, bringing their week-long work stoppage to an end.
Finnish traffic cops set to miss out on Gumball speeding fine jackpot
Several contestants in the Gumball rally were stopped for speeding on Monday, on the Turku-Helsinki leg of their unorthodox race. Police say that despite their concerns, the drivers are likely to escape Finland’s hefty income-based fines.
