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Finland: Cuts growth estimates by half due to war

In 2022, Finland’s economy will grow by half as much as expected before Russia launched an invasion of Ukraine, according to the Ministry of Finance.

GDP will grow by only 1.5%, lower than the previous forecast by 3%, the ministry predicts.

“The picture of the economy changed dramatically when Russia invaded Ukraine,” it said.

“In recent weeks, forecasting services have been making assessments about the fate of Ukraine, Russia, Europe and Finland.

No one knows for sure. Of course, at least this year, the economy will grow at a much slower pace in Europe and Finland than previously expected. ”

Sanctions against Russia will slow Finland’s growth through reduced exports and manufacturing, the ministry said.

His forecast estimates that the current sanctions will remain as they are. Rising consumer prices will also hit growth as household purchasing power shrinks and the growth of personal consumption slows.

Source: Capital

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