Finland is doing worse economically today than during the war or during the recession in the 1990s – !Argument

A new comparison showed that the economy grew more slowly in the last decade than during the biggest upheavals of the 20th century…

Finland’s economic growth has been so slow in recent years that the Nordic country has not seen comparably weak numbers since the recession of the early 1990s or the war years, Finnish newspapers said Helsingin Sanomat.

Newly published analysis shows that growth in recent years has been the slowest since World War I and the country’s civil war in 1918. This was shown by a study by economist Lasse Corin, who examined the ten-year average change in Finland’s gross domestic product (GDP) per capita from the 1870s -2022 (while removing the influence of individual ups and downs). Corin points out that the Finnish economy has never suffered from such stagnation as it is now, not even compared to the recession after the collapse of the USSR or the Second World War.

Finland in particular went through a severe banking crisis in the 1990s, which was related to the collapse of Soviet trade, devaluation and mass unemployment.

According to data collected by Corin, the ten-year average growth of Finland’s GDP per capita in the decade of the banking crisis, i.e. 1984-1993, was around 0.90%, while it was only 0.67% in 2013-2022. In the decade of World War II, from 1938 to 1947, the corresponding change in GDP was 0.74%.

But Finland is no exception today. Economic growth in Sweden and Denmark also slowed down compared to the development since 1970. The analysis also showed that the Nordic economies only grew until the beginning of the global financial crisis.

Currently, one of the factors that appears to be influencing the slow growth of the Finnish economy is the slowdown in productivity growth, a new study claims.

According to Corino, slow economic growth in the last decade is an obstacle to solving the country’s fiscal problems. In 2025, however, the Finnish economy is expected to grow at 2%. According to the Finnish economist, just 2% average growth will be needed in the coming years in order for Finland to get into much better shape.

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