Finnish economy: Recovery in sight.

After being battered by the worst economic downturn in two decades, Finland is taking tentative steps towards a possible recovery. But it may take a couple of years before the country can breathe easy on this score.

The Finnish economy, heavily dependent on exports was badly affected by the drop of its export business on acount of declining demand for its products, overseas. Among the major exports of Finland are timber, pulp, paper, machinery, equipment, chemicals, metals, etc. And its imports include foodstuffs, beverages, oil, transport equipment, etc.

With the global recession hitting one and all in the pocket, overseas orders for Finnish products declined to a point where the contribution of the export sector to the GDP of the country was nearly halved to about 35%. As a consequence, investment went down, and unemployment up, and this in turn resulted ina drop in domestic consumption. A typical cycle of negative factors chasing one another.

It would appear that the Finnish establishment had not expected the recession to be so severe, and official figures about economic growth and development had to be revised more than once.

However, things may now be looking up for this country of pristine forests and the ubiquitous Nokia phone. According to the Research Institute of the Finnish Economy, the GDP for the year 2010 is set to rise by 1.5%. Exports, the life blood of the Finnish economy, are projected to pick up in 2010, and improve futher in 2011.

The enthusiasm of the Institute is shared by independent economists, who, in a recent radio interview conducted by the Finnish Broadcasting Company, expressed optimism about their economy. According to them, the economy should pick up steam in the last quarter of 2009. But given the fact that, Finland is heavily dependent on exports, there is still some uncertainty about a quick turnaround.