Recession and deflation: risks for Finland
This content is archived.
Finland has traditionally had a very cyclical economy, highly exposed to world markets, and sensitive to global shocks. A major driver of Finland’s GDP growth is Nokia, the country’s largest company, and the single most significant cause of the country’s success.
The global downturn has caused a severe contraction in the Finnish economy, and a 5.2% fall in the average price of ‘existing’ dwellings, during the year to end-Q1 2009. Adjusted for inflation, existing dwelling prices fell by 6.8% y-o-y to end-Q1 2009, according to Statistics Finland. The average price of existing houses is now €1,878 per sq. m.
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