Finland overcomes recession: Bank of Finland

The Bank of Finland said on Tuesday that Finland had overcome the recession after years of economic stagnation.

In its prediction, the bank said the Finnish gross domestic product (GDP) in 2017 would be 1.3 percent and 1.2 percent in 2018 and 2019.

In June this year, the bank kept its GDP expectations for 2017 at 1.1 percent and the figure for 2018 at 1.0 percent.

The bank attributed the growth to increased household demand and growth in investments.

However, Finland shows sluggish growth in comparison to other eurozone countries. Among the negative factors, the bank singled out "structural problems" and an aging population.

Bank governor Erkki Liikanen voiced the concern over uncertainty of the world economy.

He told local media that "talks about national isolation have increased whereas as the need for international cooperation is great." He mentioned environmental, refugee and economic issues as examples where such cooperation was needed.

The bank believed the challenges for Finland lay in the high ratio of long-term unemployment and the tendency of an increasing cohort of young adults alienated from society.

The bank said it was possible to halt the growth of national debt in the intermediate term, but underlined that the long-term problems of the public sector needed solutions. Endit