Growth for Finland in 2023 cut due to a difficult upcoming winter

Despite a better start to 2022 than previously estimated, we have kept our forecast for this year unchanged due to downward revisions in H2 2022. Downside risks to activity are mounting, with high inflation increasingly passing through to core prices, squeezing real incomes and denting confidence. Meanwhile, energy prices remain elevated, and gas rationing in Europe this winter is increasingly likely.

What you will learn:

• GDP in the first half of this year surprised on the upside.
• After an Omicron-related drop in January, activity increased in the following months despite the outbreak of the Russia-Ukraine war.
• Inflation hit 7.8% in June, another 30-year record.