Banks forecast faster growth for Finland than expected

Nordea and OP-Pohjola Group have revised their forecasts upwards as the growth of the Finnish economy gains momentum.

Finland’s economy is expected to grow faster than predicted earlier this year, according to the latest forecast from Nordea, the leading financial services group in the Nordic and Baltic Sea region. Nordea has adjusted its forecast for Finland’s GDP in 2010 from 2.7% to 3.5%. For 2011 Nordea predicts 3% growth for the Finnish economy, with 3.5% expected for 2012

The Finnish economy is recovering from the recession at a variable tempo which can reach as high as 6% growth at times, according to Nordea economist Reijo Heiskanen. Nordea also adjusted its 2010 forecast for the Eurozone countries, up to 1.6% from 1.4%, a growth level it expects to continue in 2011.

Finland’s economic prospects have also improved according to the latest forecast from the OP-Pohjola Group, Finland’s largest financial services group. OP-Pohjola predicts that Finland’s economy will grow by 2.5% both in 2011 and 2012, up a whole percentage point from the previous forecast of 1.5% made in May 2010. OP-Pohjola also expects unemployment to fall below 8% next year as the growth accelerates.

Sources: Nordea, OP-Pohjola, MTV3