Finnish Finance Ministry lowers growth forecast to 0.5% in 2023

Finland’s economy will grow by 1.7% in 2022 and by 0.5% in 2023 amid Russia’s war in Ukraine, according to a Finnish Finance Ministry forecast published Monday.
In a previous forecast on June 17, the finance ministry projected the economy to grow 1.4 percent this year and 1.1 percent in 2023.
“Russia’s invasion of Ukraine, which began in early February, continues and is overshadowing economic prospects. Economic growth is slowing and inflation is accelerating more than expected. Finland’s gross domestic product (GDP) is projected to grow by 1.7% in 2022, 0.5% in 2023, and 1.4% in 2024,” the report said.
The forecast assumes that the sanctions imposed on Russia in the summer of 2022 will remain in force. In addition, no restrictions are expected to be imposed that would have economic consequences to prevent the spread of the COVID-19 pandemic.
The Finnish Ministry of Finance also expects a moderate decline in commodity prices over the forecast period, the report specifies.