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Nordea Bank improves forecast for Finnish economy

Xinhua, March 12, 2015 Adjust font size:

Nordea Bank released a brighter forecast for the Finnish economy in 2015 and 2016 on Wednesday.

The bank upgraded its outlook for the Finnish economy in 2015 from minus 0.3 percent to zero percent and 2016 from 1.0 percent to 1.5 percent.

The economic stagnation will remain in 2015 due to the low level of the country's total output in last year, weak domestic demand, and gloomy exports, said the bank.

However, growth will accelerate starting from 2016. The dynamics driving the economic resurgence are recovery in the euro zone and the lower oil price.

In addition, the particularly loose monetary policy should support further growth in the euro zone.

Growth in the euro zone is also expected to boost the demand of Finnish exports, which is considered a crucial contributor to the Finnish economy.

According to the bank, the trend of economic decline in Finland has been already halted. The growth will probably start this year, if the long-prepared structural reforms are carried out as soon as possible by the Finnish government.

The bank's economists, however, pointed out that further economic stimulus is not enough. They called for the implementation of resolute reforms to bring public finances into a sustainable situation, promote investment, and bolster the labor market. Endit