Two economic forecasts promise slightly improved conditions for end of year
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The recession will ease off during the remainder of the year, but great uncertainty will continue to prevail in the economy, predict both Nordea Bank and the Labour Institute for Economic Research (PT) in their economic forecasts published on Tuesday.
Based on the Nordea and PT estimates, Finland ’s economic prospects have slightly improved from the early summer.
For example the Ministry of Finance predicted in June that Finland’s economy will be reduced this year by six per cent and will hardly grow next year either.
According to Nordea and PT, Finland ’s outlook is improving with the picking up of the world economy.
Despite the structural crisis afflicting the forestry industry, Finland ’s “economic development follows comparatively closely the development of the international economy”, PT estimates.
Nordea and PT also agree that unemployment will continue to increase far into the coming year, although PT’s prediction is a good deal bleaker than that of Nordea (see graph).
In June the Ministry of Finance predicted that next year’s unemployment figure would be exactly ten per cent.
The recession has already caused reductions to paying bonuses and other extras to worthwhile workers.
In other words, “the weak labour market has already affected the wage trend”, PT estimates.
Helsingin Sanomat
