Bank of Finland Says Rapid Recovery Unlikely, But Worst Avoided

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Finland’s rapid recovery from the economic crisis caused by the coronavirus looks unlikely, but the worst-case scenarios have so far been avoided, Bank of Finland governor Olli Rehn said on Tuesday, Reuters reported. The bank believes Finland’s gross domestic product will contract around 7% this year and grow around 3% in 2021 and 2022, but said GDP contraction could be as little as 5% or as much as 11% in 2020 in alternative scenarios. “Finland has not experienced a sizeable wave of bankruptcies. Furlough schemes have meant that redundancies have remained fewer in number than initially feared,” Governor Olli Rehn said in a statement. Rehn said the price of labour could prove crucial in determining the length of the crisis in a small country like Finland, heavily dependent on exports, which the bank expects to contract 15,8% this year. Read more