The Ministry of Finance has upgraded its growth forecast for Finland for 2018.
Its latest economic survey indicates that the national economy will grow at a clip of 2.9 per cent this year but also that the growth will slow down considerably in the following years – to 1.8 per cent in 2019 and to 1.7 per cent in 2020.
The Ministry of Finance in April forecast that the economy would grow by 2.6 per cent in 2018, 2.2 per cent in 2019 and 1.8 per cent in 2020.
Both foreign trade and domestic demand will continue to support the economy in the years to come, according to the Ministry of Finance. The growth in exports is expected to slow down moderately along with global trade, while domestic demand is to remain resilient in spite of a lower rate of growth in real income.
Investments are similarly projected to continue supporting economic growth despite not growing at the rates of recent years due to a slowdown in residential construction.
The Ministry of Finance is also confident that the employment situation will continue to improve in Finland. The national employment rate is forecast to improve to 71.2 per cent by the end of 2018 and to 72.6 per cent by the end of 2020.
“The number of the employed will increase by nearly one per cent in 2019–2020,” reads a press release from the Ministry of Finance.
The cyclical position of the economy will also help to reduce the budget deficit and debt ratio of Finland. The budget deficit is forecast to be eliminated by 2020, while public debt as a percentage of the gross domestic product is forecast to drop below 60 per cent in 2019.
Aleksi Teivainen – HT
Photo: Anni Reenpää – Lehtikuva
Source: Uusi Suomi