Will Finland be subject to this expenditure in the restructuring of the “troika”? Greece is setting an example in economic management

There is a storm in world politics, but economic growth is picking up in Finland. This is how the banks’ financial forecasts published on Wednesday are interpreted.

Nordea, Swedbank and Aktia predict subdued economic growth of 1.0–1.3 percent for this year and 1.6–2.0 percent for next year.

“Indeed, many elements in the global economy are doing quite well in terms of growth, good productivity growth and technological development. But the big question is how the global economy can withstand this uncertainty caused by geopolitics and fast-paced customs policy,” reflected the journalist Olli Kuivaniemi Talousamaun’s live broadcast on Wednesday.

“It’s good to note that when I asked Nordea, these most recent twists and turns, i.e. Trump’s customs threats over the weekend, are not included in the forecasts.”

On Tuesday, Finland was officially put under the EU’s “monitoring category” due to the difficult situation of the public finances.

“During the spring, it will probably be clarified whether there will be pressure to make even more adjustment measures this election season. This is not yet known for sure.”

According to Eurostat’s comparison, in the spring of last year Finland was the EU’s fastest-growing indebted economy.

At the other end, the member state that reduced the debt ratio the most, was Greece, whose economy has been seen as the last warning example in Finland since the euro crisis.

Does Finland now have a chance to get on this path of Greece?

“Yes, it requires a lot of work. Of course, what is essential is what kind of adjustment measures may be taken in the public economy in this election period and above all in the next election period. But the decisive factor is of course the other side, how economic growth develops. That is, if more power can be extracted from this Finnish economic engine, then the debt ratios can start to improve quickly. But it really requires faster growth.”

Petteri Orpon The (kok) government has adapted relatively quickly this election season, but the numbers still look bad.

The “Troika”, i.e. the EU Commission, the European Central Bank and the International Monetary Fund IMF, finally restructured Greece in the euro crisis. Finland has a similar situation: everyone knows what should be done, but it is politically difficult.

Is this still in the hands of the politicians?

“I believe that this matter is still in Finland’s hands. This and especially in the next election period, additional adjustment measures and means to accelerate growth are needed, but yes, this is still in our own hands.”

Kuivaniemi pointed out that if Trump’s tariff threats start to materialize and growth forecasts have to be pulled down again, at the same time the government will lose the oxygen to take any growth-promoting actions.

“During the April frame rush, the government will certainly aim to make some growth measures, but I will follow with interest how the space is cleared for them.”

In principle, the Finnish economy does have food for growth, Kuivaniemi added.

“Exports will pull reasonably if the tariffs don’t destroy it. The situation of households has improved, there is purchasing power. Perhaps the most decisive factor in this year’s growth is whether households dare to start spending.”

The Trump storm hit the market: What should an investor do now? Watch the broadcast of Talousamau in its entirety from here.