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Brexit leads to economic uncertainty – Finland is most affected in the long term – Hufvudstadsbladet

Brexit leads to economic uncertainty – Finland is most affected in the long term – Hufvudstadsbladet

According to Nordea's chief economist Aki Kangcharjo The economic consequences are not as large as one would expect for Finland. The economic impact of Brexit is most pronounced in Finland through the indirect consequences on trade and investments.

– Markets reacted strongly on Friday, but in the afternoon they already started to recover. We won't be able to see the long-term effects of this decision until the fall. It is now up to companies, above all European companies, to decide what happens next, and then we will see how it affects the real economy, says Aki Kangasharjo.

Director of Danske Capital in Finland Thomas Wirtala Comments that markets reacted so strongly because prices were set earlier this week in line with the UK remaining in the EU.

The decision by the Bank of England and the European Central Bank to support banks' liquidity when needed helped mitigate the shock to financial markets. Now we wait to see whether other central banks take similar action.

– We are not facing a global economic crisis, but rather a weak and uncertain temporary time, says Thomas Wirtala. He adds that now you have to see at what level interest rates fall, how central banks react and how negotiations begin to leave the European Union. Great Britain.

Aki Kangacharjo of Nordea believes that Brexit may have an impact on the euro exchange rate as well in the long term and that Brexit may cause the euro to appreciate more slowly than it would have otherwise.

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– Since Finland is an export-dependent country, a weak euro could be a positive thing for Finnish exports, for example in relation to the USA.

On the other hand, in Företagarna i Finland they are more critical regarding the impact of Brexit on the Finnish economy.

– It is clear that Brexit weakens Finland's economic outlook. The negative consequences are reinforced by the fact that Finland is a country highly dependent on exports. Brexit will inevitably send the UK economy into a downward spiral, dealing a severe blow to export-reliant Finland. The decision also underscores the need for Finland to renew its economy and implement a policy in which we take care of Finland's competitiveness in all situations, says Entrepreneur Finland's head of business. Mikael Penticainen.