Finland | GDP for 2020 has been revised down

Finland’s GDP for 2020 has been revised down, with a larger contraction in the first half of the year and a stronger rebound in the second half, while Q1 2021 GDP has been revised up from a mild contraction to flat growth. This affects this year’s average, although the near-term outlook is broadly unchanged with a strong rebound in Q2 and Q3. Our forecast for GDP growth this year is now 3.1%, up from 2.5% seen last month, before a slowdown to 2.1% in 2022.

What you will learn:

• Our 2021 GDP growth forecast is raised to 3.1%, with 2.1% still seen in
  2022
• We have kept our forecast for household consumption largely unchanged with a rebound of 2.5% q/q in Q2
• Fixed investment was revised up for 2020, mainly due to government investment