Danske Bank almost doubles growth forecast for Finland

Danske Bank has upgraded its growth forecast for Finland in 2017.

The Nordic financial services provider announced yesterday that it has raised its growth forecast for the year to 2.8 per cent on grounds of the better-than-expected growth and recovery of exports and investments witnessed in the country over the first few months of the year.

“The growth has taken us by surprise,” admits Pasi Kuoppamäki, the chief economist at Danske Bank.

“As good a piece of news as the upswing is, the gross domestic product remains almost four per cent lower than at its peak before the financial crisis. We still have a lot of catching up to do, and what we are witnessing is mainly a burst towards the potential output of the economy,” he adds in a press release.

Danske Bank in March stated that it expected the economy to expand by 1.5 per cent year-on-year in 2017.

Kuoppamäki points out that the positive development will bring greater stability to households in Finland. “The employment situation is improving, and the unemployment rate is getting closer to eight per cent. [...] Low interest rates will continue to alleviate the situation of indebted households,” he lists.

The purchasing power of consumers, however, is only expected to improve modestly due to rising inflation, reminds Kuoppamäki.

Danske Bank also revealed that it expects exports to grow by seven per cent and investments by six per cent year-on-year in Finland in 2017 – the latter being driven increasingly by an up-tick in industrial investments.

“The turnaround in exports has been more robust than we dared to expect,” tells Kuoppamäki.

“The Finnish gross domestic product could in the best-case scenario achieve a growth rate of over three per cent in 2017, if the growth in exports continued and industrial investments picked up further in the latter part of the year,” says Danske Bank.

Aleksi Teivainen – HT

Photo: Anni Reenpää – Lehtikuva

Read other news on the city site of Helsinki.

DanskeBank Finland growthforecast
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet


Post your comment to communicate and discuss this article.

A man wanted in connection with a suspected arson attempt on a home in Helsinki’s Käpylä district was remanded into police custody on Sunday. The Helsinki district court has remanded a man suspected of attempted arson and attempted murder into police custody, ending a short-lived manhunt, police said on Sunday. The 25 year-old is suspected of using a Molotov cocktail to cause a fire at a flat in Käpylä, Helsinki last Monday. The apartment was completely de...
Helsinki Central Library Oodi will opened its doors to the public on 5 December at 8am, a day before Finland’s 101st birthday. Designed by ALA Architects, this library of a new era is an ode to Finnish culture, equality and freedom of expression. Oodi offers everyone an open, public urban space at Kansalaistori Square, right opposite Parliament House. Central Library Oodi is an active and functional meeting point with 2.5 million expected annual visitors....
The teacher was convicted for nine incidents of sexual abuse that took place between 2013 and 2017. A teacher at a Swedish-language school in Helsinki was slapped with an 18-month suspended prison sentence for the sexual abuse of students in his charge. The court also ordered the defendant to pay damages amounting to 1,500 euros to one of the complainants and 1,200 euros each to four others. The court found that the offences occurred between 2013 and 2017....
Four projects will focus on resident services, data and AI, infrastructure and enablers and it aims to promote a culture of experimentation. Helsinki is continuing its drive to make the best use of digitalisation with four new projects focused on resident services, data and artificial intelligence, infrastructure and enablers, and a culture of experimentation. The Finnish capital is striving to be the world’s most “functional” city and to achieve its aims...
Police suspect a fire that destroyed a flat in Helsinki Monday night was ignited by a Molotov cocktail thrown through a window. No one was hurt in the incident. Authorities are investigating a case of suspected arson and attempted murder in Helsinki related to a fire that broke out shortly before 8 pm Monday, ravaging an apartment in the city's Käpylä neighbourhood. Police suspect that a burning Molotov cocktail, also known as a petrol bomb, was thrown thr...
The ministry also wants the national communications regulator to determine whether Trafi's other consumer services can be safely restored on Wednesday. The Ministry of Transport and Communications has asked the Finnish Communications Regulatory Authority Ficora, to assess data privacy and security on the web services of the Finnish Transport Safety Agency, Trafi. The request follows a recent public backlash to Trafi's decision to open an online database wh...
Taking a train between Finland and Estonia will be possible by Christmas 2024, says the entrepreneur behind one of two massive tunnel projects being planned. Last week the FinEst Bay Area Helsinki-Tallinn tunnel project received 100 million euros from a Dubai-based construction group ARJ Holding – the first external financing made towards the estimated 15-billion-euro effort. Peter Vesterbacka - a man who made a fortune as a marketing boss at mobile gaming...
Several protest marches took place in Helsinki on Thursday evening. Police intervened to forcibly remove swastika flags from Neo-Nazi demonstrators. Police said on Thursday that they will open an investigation into neo-Nazis flying swastika flags in downtown Helsinki. Four protesters had reportedly been taken into police custody. Two processions made their way through Helsinki city centre Thursday evening. The neo-Nazi Kohti vapautta ('toward freedom') dem...
Most of Friday’s papers focus on Thursday's gala at the Presidential Palace in Helsinki where Finland's movers, shakers and honourees were invited to celebrate the nation’s 101 years of independence. Traditionally, media attention has centered on the best-dressed guests and this year was no exception. According to tabloid Ilta-Sanomat, among the most elegant invitees this year was MP Jaana Pelkonen, who wore a bright yellow sleeveless dress by French desig...