Finnish economy not looking good as Finance Ministry downbeat on economic out look
Thursday, 19 December 2013
Finland's finance ministry expects the country’s recession in 2013 will be deeper than previously feared. The country's GDP is now projected to decline by 1.2 percent this year, against the previous forecast of minus 0.5 percent.
Inflation is expected to remain at 1.5 percent on average in both 2013 and 2014, while the country's debt is expected to increase to 61.6 percent of GDP in 2014, up from 60 percent in 2013.
The Finance Ministry said Thursday that its previous economic forecast released in June anticipated a 0.4 percent decline in economic activity. However, it is now projecting that the economy contracted by 1.2 percent this year.
“This is the second consecutive year that the economy has gone into minus territory,” said Mika Kuismanen, a senior Ministry official.
The Ministry is projecting growth of just 0.8 percent next year and 1.8 percent in 2015.
The finance Ministry releases an economic forecast twice a year. In its previous outlook in June, officials pegged growth in 2014 at 1.2 percent and at 2 percent in 2015.
By Scancomark.com Team