Finland downgrades economic forecast

The Finnish finance ministry lowered its forecast for the country’s economic growth in 2015 from 0.5 percent to 0.2 percent, according to the ministry’s economic survey-autumn 2015 published on Monday.

While the global economic outlook has showed signs of gloom, the Finnish economy is in a serious situation, with GDP growth close to zero and unemployment increasing, said the ministry.

The ministry downgraded Finland’s economic growth in 2015 from 0.5 percent, which was made in April this year, to 0.2 percent, Xinhua news agency reported.

It also projected Finland’s GDP to grow by 1.3 percent in 2016 and 1.4 percent in 2017. The previous forecast made in April this year was 1.4 percent and 1.5 percent respectively.

The growth will be driven by positive investment trends and recovered domestic demand, said the ministry.

The ministry said the central government’s fiscal deficit will continue until the end of this decade, and the public debt to GDP ratio in 2015 will exceed the 60 percent threshold set by the EU, and it will continue to climb up in the next a few years.