The Finnish economy will decrease by one percent during 2023 and sink into recession, according to an economic forecast published on Friday by Hypo, the Mortgage Society of Finland.
This expected downturn is being driven by Russia's war in Ukraine, Hypo said, which is in turn impacting consumer confidence and consumption as well as weakening Finland's foreign trade prospects.
The home financing specialists added that the effects of the downturn will be particularly evident in the first half of this year.
However, the report also said that the average level of wage rises will hit a 15-year high this year, further noting that it expects the Finnish economy to recover from the mild recession in the second half of 2023 and return to growth by 2024.
Would you like a roundup of the week's top stories in your inbox every Thursday? Then sign up to receive our weekly email.
