The economic consequences of the war in Ukraine have also had an impact on Finland's economy. The volume of Finnish exports decreased by 2.9 percent from the previous quarter, while imports fell by 2.4 percent from October to December 2022. The Finnish economy was up 2 percent compared to 2021 for the year as a whole.
In 2023, the government and central bank forecast a decline of 0.2 percent before growth returns in 2024 and 2025, according to their latest forecast in December. The forecast could be uncertain, given the margin of error in economic predictions, according to experts.
Sweden has not seen two consecutive declines in its GDP, but its economy has shrank by 0.2 percent in the fourth quarter compared to the same period a year ago, according to the national statistics office SCB. The decline was felt in many parts of the economy, with declines in business investment and household consumption. The Swedish economy grew by 2.6 percent over the course of the year 2022, according to the SCB. According to its latest forecast published in early February, the Swedish central bank expects GDP to fall by 1.1 percent this year, which is in line with the European average.
Despite the technical recession in Finland and economic challenges in Sweden, economists suggest that the term technical recession is a poor indicator of the actual economic situation. Niku M tt nen, professor at Helsinki University, said there was no universally accepted definition of a recession in economics. The term should be used when there are significant declines in economic activity across several key indicators, such as production, employment, consumption, and investment.
In the coming year, the economy of Finland is expected to see zero growth. The economic growth in Finland is expected to be affected by the economic consequences of the war in Ukraine on consumer and business confidence. The uncertainty in economic forecasts highlights the need for caution in interpreting economic data and the importance of considering multiple indicators when assessing the health of an economy.