Aurora in Someroharju, Finland

Finnish economy in recession in the second half of 2022 due to inflation and Ukraine crisis

The Finnish economy experienced a recession in the second half of 2022, according to the country’s National Statistical Office. The economy shrank by 0.1% in Q3 and 0.6% in Q4, which resulted in a technical recession. This economic downturn was attributed to the rising inflation and the crisis in Ukraine, which have impacted both consumer and business confidence.

Despite the recession, the Finnish economy grew by 2% for the full year of 2022. The country has been working to recover from the impact of the pandemic, which led to a 3.2% contraction in 2020. The Finnish government has implemented several measures to support businesses and individuals during the pandemic, including financial assistance and job protection schemes.

The Finnish government is now looking to boost economic growth and create new job opportunities. One of the key initiatives is the Green Deal, which aims to accelerate the country’s transition to a low-carbon economy. The Green Deal includes investments in renewable energy, energy efficiency, and sustainable transport.

The Finnish government is also committed to enhancing innovation and digitalization, which are critical for long-term economic growth. The country has a strong technology sector and is home to several innovative companies, including Nokia, Rovio Entertainment, and Supercell.

Despite the challenges faced by the Finnish economy, the country remains committed to its long-term economic goals and is taking steps to address the current challenges.

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