Finnish economic growth expected to remain stagnant: Aktia Bank

The economic growth of Finland is expected to remain stagnant for years, predicted Aktia Bank in its latest Economic Review published on Monday.

Aktia forecasted that Finland's gross domestic product growth this year will remain at zero, as the country failed to bring a turnaround in economy.

Weak domestic demand, declining employment and low wage increases are major reasons behind the stagnant economic development.

Aktia said Finland's GDP will grow frailly by 0.5 percent in 2016, adding that the pickup of international trade will support the growth of GDP and exports.

In addition, the public debt will continue to rise and the state deficit will not be narrowed in Finland next year, according to Aktia.

"Finland is in a situation where only reform will lead the country back to the growth path," said Heidi Schauman, chief economist of Aktia, in the economic review.

Strengthening competitiveness, wage moderation and other long-term changes should be built as an overall package, in which the long-term goal will be high competitiveness and low unemployment, added Schauman.

According to Aktia, the world economy will grow by 3.5 percent in 2016. The economic growth will be accelerated both in developed and developing economies. Consumption will be the main driver of the global economy. Endit