Omicron wave is expected to have a mild impact on the Finnish economy
Our forecast for Finland’s GDP growth is 2.3% this year and 1.5% in 2023, both unchanged from last month. Despite a recent surge in Covid cases related to the spread of the Omicron variant, formal restrictions remain light and pressure on hospitals is limited.
What you will learn:
- After a relatively weak Q4 2021 and Q1 2022, we expect the economy to accelerate, but the evolution of the pandemic remains the key risk in the coming months.
- Consumer confidence fell further in December but remains above the level of a year ago.
- The employment rate has already recovered to its pre-pandemic level and the unemployment rate was down to 6.8% in November, while companies in construction and industry report large labour shortages.
Easing financial conditions offer CRE some respite
Our measure of financial conditions has become less restrictive in the US and started to loosen in the eurozone and the UK, reflecting investors' expectations that interest rates have peaked. This should aid the outlook for commercial real estate (CRE) on the margins, although the scale of past rate hikes, sluggish economies, and structural headwinds mean the sector still confronts challenging fundamentals.Find Out More
Eurozone key themes 2024 – A fragile recovery will gain impulse
After a year of stagnating activity, the eurozone economy will continue to struggle to gain traction in the near term given multiple headwinds. But we expect a gradual recovery in 2024 that will gather momentum as consumers regain some of their lost purchasing power and financial conditions ease.Find Out More