Finland stopped – a fast recovery from the crisis might still be possible

The economic outlook for the current and following year depends on the duration of the halt in economic activity caused by the coronavirus and on whether the crisis spreads to the financial sector. The Labour Institute for Economic Research’s forecast is based on an assumption of a deep but relatively short contraction, ending at the latest by next autumn.

In the forecast, GDP is expected to contract by about 5 percent this year and grow by about 4.5 percent next year. The costs of a broad wave of corporate bankruptcies would be significantly higher than the costs of compensating for the disruption to business activity. Additional direct support for firms and households affected by the crisis is therefore needed. (AI translation)

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