Nordea forecasts 1% economic growth in 2024

Nordea Bank projected zero growth of gross domestic product (GDP) for Finland this year and 1 percent growth in 2024, reported Xinhua, quoting a press release issued by Nordea on Wednesday.

The growth of Finland's economy slowed down at the end of 2022, when the strong rise in energy prices and interest rates reduced private consumption and export demand.

As a result, the economic outlook for this year is very mixed with bleak consumer and corporate confidence.

However, inflation in the country is expected to ease along with an anticipated wage growth, which would relieve household finances towards the end of the year, the bank said.

At the same time, economic growth in the Nordic states will shrink by 0.5 percent this year and will grow by 0.9 percent next year, while the global economy will grow by 3.2 percent in 2023 and by 2.7 percent in 2024, the bank said.

The global economy may outperform expectations this year despite its current slow growth.

High inflation is eroding households' purchasing power, and in the Nordic countries the housing markets face a sharp slowdown.

However, according to the bank, the recent economic developments have been surprisingly positive and "there are signs that the year 2023 could also cause positive surprises."