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OP forecast: Finland's economy to grow this year, then enter mild recession

Finland's economy is predicted to dip next year as the recent economic boom gradually fades, according to the financial group's chief economist.

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The rise in energy prices, which has accelerated inflation, should slightly subside towards the end of the year, according to the group's forecast. Image: Anu Heikkinen / Yle
Yle News

Finland's gross domestic product (GDP) will grow by 2 percent this year, but will decline to zero next year, according to an economic forecast by the OP-Pohjola Financial group (OP).

The country is therefore expected to enter a mild recession next year as the recent economic boom gradually fades, OP Group's Chief Economist Reijo Heiskanen said in a press release.

Heiskanen added that the overall economic situation for companies and households in Finland is good, which makes it easier to adapt to tougher times and also softens the blow to the economy as a whole.

OP's economists further predict that inflation will peak in the autumn.

According to the group's forecast, Finland will record its lowest unemployment rate in the current millennium this year and its highest employment rate ever. Meanwhile, there will be an unusually high number of job vacancies. As economic growth slows, unemployment is expected to rise and employment rates to fall.

The group predicts Finland's economy to recover slightly in 2024, although GDP will only grow by 0.7 percent.

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