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Finnish economic growth to remain sluggish

Xinhua, September 16, 2016 Adjust font size:

The Finnish economic growth will remain sluggish and the deficit in the public finance will continue, said the Finnish Ministry of Finance on Thursday.

The ministry lowered its forecast for the economic outlook this year to 1.1 percent from 1.4 percent in its previous prediction made in June. In the next two years, the growth will remain at around 1 percent.

The ministry said the country's GDP in 2018 will be some 3 percent lower than the level in 2008, even though the competitiveness of production will be improved and unemployment will be reduced gradually.

The moderate economic growth will be driven by domestic consumption and increased investment, particularly in construction sector, said the ministry.

Meanwhile, the deficit in Finland's public finance will not be curbed in the near future.

"The subdued growth in the economy will not generate sufficient income to finance public expenditure. Expenditure will be increased by the aging population in particular," explained the ministry in a press release.

The Finnish economy has been mired in a prolonged recession since the global financial crisis in 2008. After three consecutive years of negative growth, it finally started to show signs of recovery in 2015. Endit