Nordea forecasts zero economic growth in 2023

Nordea Bank, the largest bank in the Nordic countries, downgraded its growth forecasts for Finland's economy on Wednesday, reported Xinhua.

According to Nordea, Finland's gross domestic product (GDP) would grow by 2.5 percent in 2022, followed by zero growth in 2023.

The bank cited high inflation, rising interest rates and the European energy crisis as the main reasons.

In its previous forecast published in May, the bank projected two percent growth for 2022 and 1.5 percent for next year.

Electricity and fuel prices are record high across Europe, and Finland is no exception.

According to Nordea, the country's exporters are also faced with a marked drop in demand as the markets across the continent are struggling to stay afloat.

Consumers' spending power is dwindling as inflation bites and home loan interest rates reach new heights.

Unlike many other European countries, Finland is heading into a difficult winter from a strong starting point as the country's "green transition" is expected to pay off, Juho Kostiainen, an economist at Nordea Bank, was quoted in a press release as saying.