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Finnish economy predicted to grow 0.2 pct in 2015: Bank of Finland

Xinhua, June 11, 2015 Adjust font size:

The Bank of Finland on Wednesday predicted that Finnish economy will grow 0.2 percent this year.

The bank forecasted that the growth in Finland will start later than in the rest of the eurozone and the inflation in Finland will be slower than elsewhere in the euro area.

The bank saw the aging population as a long term challenge. Despite a decline in debt during the current parliamentary period, Finland could face an increase in debt again later as the population will be getting older and related costs will be increasing, the bank warned.

The bank predicted that the growth would be 1.2 percent in 2016 and 1.3 percent in 2017. It placed the blame on the international downturn, the country's aging population structure and modest productivity.

The bank did not believe a fast solution is in sight for the structural problems of the country, but predicted a gradual growth based on increasing exports.

Inflation in Finland would remain 0.2 percent this year and reach 1 percent in 2016.

The Bank of Finland said if the stricter financial policies envisaged by the Finnish government will be applied, Finnish public economy will strengthen and the debt ratio will decline at the end of the current parliamentary period. Endit