The Finnish economy will fall into recession in the second half of this year, according to an economic survey released by the Finance Ministry on the 9th.

Finland's economy is growing well at the beginning of 2023, but rising prices and interest rates have reduced private consumption and investment, which will lead to a recession in the second half of the year and zero growth this year, the finance ministry said.

The Finance Ministry expects Finnish inflation to slow in 2024, interest rates to start falling and households' purchasing power to grow.

In addition, Finland's economic growth is expected to be 1.2% and 1.8% in 2024 and 2025, respectively.

The finance ministry said the Finnish government's fiscal position will be weaker in the coming years and the debt ratio will continue to grow. The general government fiscal deficit as a percentage of gross domestic product (GDP) will reach between 2024 and 2026
To 3% or more, falling to 2.8% of GDP in 2027.