Finland’s economy was in recession in 2012-2014 and the country moved back to growth mode in 2015, when the GDP gained 0.5%. Unemployment rate remained relatively high at 9.4% in 2015, but slight improvement and decline of the unemployment to 9.3% is estimated for 2016. If the Finnish economy slips back into recession or fails to meet expectations in the current or future years–for 2016, economists anticipate GDP growth of 0.9%–the losses on loans to Finnish residents may well rise more than expected or planned for, which will have an adverse effect on Bondora Group´s business, performance of the loans, and Bondora Group's and the investor's financial condition, cash flow and operational results.
Credit rating agency Moody´s rates Finland as Aa1 with stable outlook. Regardless, Bondora Group has already demonstrated that it can operate successfully during an economic downturn.